A firm requires an investment of $30,000 and borrows $10,000 at 8%. If the return on equity is 14% and the tax rate is 21%, what is the firm's WACC

11.466%

Explanation:

WACC = cost of equity x percentage of equity + cost of debt x percentage of debt x (1 - tax rate)

percentage of debt = 10,000 / 30,000 = 0.33

percentage of equity = 1 - 0.33 = 0.67

0.67 x 14% + 0.33 x 8% x (1 - 0.21) = 2.086% + 9.38% = 11.466%

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.

answer; trojan horse;