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4. Firm Horizons Ltd is an all-equity financed firm. The estimate of company's beta is 1.15. The yield on the 30-year US government bond is

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4. Firm Horizons Ltd is an all-equity financed firm. The estimate of company's beta is 1.15. The yield on the 30-year US government bond is 3.7% and the market risk premium is 7%. The estimated cost of capital of Horizons Ltd is (a) 12.5% (b) 11.75% (c) 11.98% (d) need information on company's credit spread and corporate tax rate to answer the

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