Question
13. FrameCo's current stock price is $30.00 per share and the company has 10 million shares of common stock outstanding. FrameCo's stock has a beta
13. FrameCo's current stock price is $30.00 per share and the company has 10 million shares of common stock outstanding. FrameCo's stock has a beta of 1.25. The firm has total debt of $100 million. The rate of return available on a 10 year US Treasury Bond is 1.81% as of you analysis date. The expected equity market risk premium is 5.00%. FrameCo's debt has an interest rate of 4.50% and the company has a 30.0% tax rate. A. What is FrameCos implied cost of equity (2 decimal places) B. What is FrameCos implied weighted average cost of capital (2 decimals places) Please show any work below
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