1. Which of the following is a form of a takeover?
I. tender offer
II. merger
III. proxy contest
IV. going private transaction
I, II, and III only
II, III, and IV only
I, II, III, and IV
I and II only
III and IV only
2. Wentworth's Five and Dime Store has a cost of equity of 12.5 percent. The company has an aftertax cost of debt of 4.6 percent, and the tax rate is 35 percent. If the company's debt–equity ratio is .85, what is the weighted average cost of capital?
7.36%
7.50%
6.87%
8.13%
8.87%