For the most recent year, a company's total market value was $6.46 million and its market...
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For the most recent year, a company's total market value was $6.46 million and its market value of equity was $5.28 million. The company's statutory tax rate was 22.00%, its average pretax borrowing rate was 5.80%, and its estimated beta was 1.35. Assume a risk-free rate of 2.70% and market risk premium of 4.10%. What is the estimated cost of equity capital? For the most recent year, a company's total market value was $6.46 million and its market value of equity was $5.28 million. The company's statutory tax rate was 22.00%, its average pretax borrowing rate was 5.80%, and its estimated beta was 1.35. Assume a risk-free rate of 2.70% and market risk premium of 4.10%. What is the estimated cost of equity capital?
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Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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