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Table 9.3

Balance Sheet

General Talc Mines

December 31, 2003

Given this after-tax cost of each source of capital, the weighted average cost of capital using book weights for General Talc Mines is ________. (See Table 9.3)

A) 11.6 percent

B) 15.5 percent

C) 16.6 percent

D) 17.5 percent

Market price per share of common stock $50

Market value of long-term debt $980 per bond

The weighted average cost of capital using market value weights is ________.(See Table 9.3)

A) 11.7 percent.

B) 13.5 percent.

C) 15.8 percent.

D) 17.5 percent.