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Assignment:Based on the information provided below, compute the Weighted Average Cost of Capital (CO 7). Acme International Capital Sources Required Return rates Common Stock and

Assignment:Based on the information provided below, compute the Weighted Average Cost of Capital (CO 7).

Acme International Capital Sources Required
Return rates
Common Stock and Retained Earnings $ 400,000 8%
Preferred Stock $ 100,000 7%
Corporate Bonds $ 300,000 10%
Corporate tax rate 35%

Instructions:Prepare the homework in Microsoft Word or Excel format. Save your assignment file as 'LastnameFirstinitial-FINC300-6, and submit by 11:55 pm ET, Day 7 (Sunday).

Your assignment will be graded according to the following Grading Rubric:

Grade

Homework Problems Grading Criteria

90-100%

  • Assigned exercises/problems are completed in full.
  • Work demonstrates effective application of the concepts/principles covered in the chapter.
  • Work thoroughly explains answers and calculations.
  • Solutions are calculated with no errors or insignificant errors.

80-89%

  • Assigned exercises/problems are completed in full or are significantly complete.
  • Work demonstrates effective application of most concepts/principles covered in the chapter.
  • Work thoroughly explains most answers and calculations.
  • Solutions are calculated with insignificant errors.

70-79%

  • Assigned exercises/problems are mostly complete.
  • Work demonstrates effective application of some concepts/principles covered in the chapter.
  • Work explains some answers and calculations.
  • Solutions are calculated with significant errors.

60-69%

  • Assigned exercises/problems are fairly complete.
  • Work demonstrates effective application of a few concepts/principles covered in the chapter.
  • Work explains a few answers and calculations.
  • Solutions are calculated with significant errors.

0-59%

  • Assigned exercises/problems are less than 50% complete.
  • Work does not demonstrate effective application of the concepts covered in the chapter.
  • Work submitted does not thoroughly explain answers and calculations.
  • Solutions are not calculated or are calculated with significant errors.

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