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A corporation's securities have the following betas and market values: ___________________Beta______________ Market Value Debt.0.1..100,000 Preferred..0.4..200,000 Common..1.5..100,000 Calculate the following figures given a riskless interest rate

A corporation's securities have the following betas and market values:

___________________Beta______________ Market Value

Debt…………………….0.1………………………..100,000

Preferred………………..0.4………………………..200,000

Common………………..1.5………………………..100,000

Calculate the following figures given a riskless interest rate of 10% and market risk premium of 5%

a. discount rates for each security

b. the asset beta for the corporation

c. the weighted average cost of capital

d. the discount rate for the unlevered assets

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