A. supervises the commission brokers for a financial firm
B. trades for his or her personal inventory
C. executes orders on behalf of a commission broker
D. maintains an inventory and takes the role of a specialist
E. is charged with maintaining a liquid, orderly market
Which one of the following statements is correct for a firm that uses debt in its capital
structure?
A. The WACC should decrease as the firm's debt-equity ratio increases.
B. When computing the WACC, the weight assigned to the preferred stock is based on
the coupon rate multiplied by the par value of the preferred.
C. The firm's WACC will decrease as the corporate tax rate decreases.
D. The weight of the common stock used in the computation of the WACC is based on
the number of shares outstanding multiplied by the book value per share.
On this date last year, you borrowed $3,400. You have to repay the loan principal plus
all of the interest six years from today. The payment that is required at that time is
$6,000. What is the interest rate on this loan?
A. 8.01 percent
B. 8.45 percent
C. 8.78 percent
D. 9.47 percent
E. 9.93 percent