Calculating the weighted average cost of capital

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Reference no: EM131329419

1. An aspect of short-term financial planning is forecasting operating cash flow and ultimately the profitability of the company in the coming period. This type of financial planning typically uses forecasted ________.

A) income statements B) statements of cash flow C) balance sheets D) All of these

2. Calculating the weighted average cost of capital (WACC): If Metro Company has the following features, what is its WACC?

A target capital structure of 65 percent common stock.

A target of 35 percent debt.

Cost of equity is 14 percent.

Cost of debt is 6 percent.

The tax rate is 35 percent.

Reference no: EM131329419

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