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3. a) What is the WACC for a firm with $21,104 in debt, and $30,461 in equity? The rate of return on their stock is
3.
a) What is the WACC for a firm with $21,104 in debt, and $30,461 in equity? The rate of return on their stock is 11.84%, and they have access to bank loans at 3.88%.
b) What is the of a stock with an expected return of 8.3% if the market return is 8.5% and the risk free rate is 4.5%?
c) What is the expected return for a stock with a of 3.811 if the market return is 9.17% and the risk free rate is 1.4%?
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