Solve for the weighted average cost of capital. 11.28% = k1 = cost of equity capital for a leveraged firm 1/2 debt-to-total-market-value ratio 8.0% = 1 = before-tax borrowing cost 40.0% -τ - marginal corporate income tax ratea. 8.67 percent b. 8.00 percent c. 7.60 percent d. 7.33 percent

WACC = Ke(E/V)  + Kd(D/V)(1 - T)

WACC = 11.28(0.50) + 8.0(0.5)(1 - 0.40)

WACC = 5.64  +  2.40

WACC = 8.0%

The  correct answer is B

Explanation:

WACC equals cost of equity multiplied by proportion of equity in the capital structure plus after-tax cost of debt multiplied by proportion of debt in the capital structure. The proportion of equity and debt in the capital structure are 50% respectively. Ke refers to cost of equity, Kd denotes before tax cost of debt, T represents tax rate, E/V denotes proportion of equity in the capital structure and D/V represents proportion of debt in the capital structure.

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.