Question
17.) The market value of Company's common stock is $40 million, and the market value of its risk-free debt is $60 million. The beta of
17.)
The market value of Company's common stock is $40 million, and the market value of its risk-free debt is $60 million. The beta of the company's common stock is 1.45, and the market risk premium is 12 percent. If the Treasury bill rate is 4 percent, what is the company's cost of capital (WACC) assuming no taxes (tax rate=0%)?
| 17.05 percent | ||
| 10.96 percent | ||
| 14.44 percent | ||
| 15.05 percent | ||
| 8.35 percent |
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Business Ethics A Stakeholder And Issues Management Approach
Authors: Joseph W. Weiss
7th Edition
1523091541, 978-1523091546
