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1 1 . Refer to the following information: Company Ke Kd D / E Mkt Cap ABC 2 6 . 3 5 % 5 .

11. Refer to the following information:
Company Ke Kd D/E Mkt Cap
ABC 26.35%5.65%3.4 $4.87 billion
DEF 21.85%5.75%1.15 $2.92 billion
GHI 19.66%4.36%0.65 $754 million
JKI 18.3%5.25%2.8 $15.67 billion
If the risk-free rate is 2.5%, and the market risk premium is 7.8%, which firm does the market consider the riskiest?

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