Hurricane Corporation is financed with debt, preferred equity, and common equity with market values of $20 million, $10 million, and $30 million, respectively. The betas for the debt, preferred stock, and common stock are 0.2, 0.5, and 1.1, respectively. If the risk-free rate is 3.72 percent, the market risk premium is 5.71 percent, and Hurricane’s average and marginal tax rates are both 30 percent, what is the company’s weighted average cost of capital?

I believe the answer would be A, Chira will have more in her savings than Wyatt in every month.

Step-by-step explanation:

If you would look at the picture, you can see (IF YOU KNOW HOW TO READ A NUMBER LINE) that in 5 months Wyatt saved only $30.75. If you look at the graph where it had chiras savings account information, you can see that in 5 months she saves $48.50. You have to look at the graph and take hers where it has the point on [15] and then the point on [20] you subtract the difference between them both, and then you would just put 2 and 2 together so obviously Wyatt saves less being that he only saves $30.75 and Chira saves $48.50 every 5 months.

I hope this helped :)

-- Abigail N.