Today, your grandmother gave you a gift of $25,000 to help pay for your college education. She told you that this amount was the result of a one-time investment at 8.2% interest 14 years ago. How much did your grandmother originally invest?

Select one:

a. $9,192.45

b. $9,504.55

c. $9,419.25

d. $8,293.89

e. $9,373.49

Question 24

Watson's Automotive has a $375,000 bond issue outstanding that is selling at 70 percent of face value. Watson's also has 21,000 shares of common stock outstanding with a market price of $21 a share. What is the weight of the debt as it relates to the firm's weighted average cost of capital?

Select one:

a. 48 percent

b. 46 percent

c. 40 percent

d. 42 percent

e. 37 percent