6. A company wants to determine the cost of equity to use in the calculation of its weighted average cost of capital. The CFO has gathered the following information: A. B. C. Rate of return on 3-month Treasury bills Rate of return on 10-year Treasury bonds Market equity risk premium 12.0. 16.3. 18.3. The company's estimated beta The company's after-tax cost of debt Risk premium of equity over debt Corporate tax rate Using the bond-yield-plus-risk-premium approach, the cost of equity (%) for the company is closest to: 3.0% 3.5% 6.0% 1.6 8,0% 4.0% 35%

6. A company wants to determine the cost of equity to use in the calculation of its weighted average cost of capital. The CFO has gathered the following information: Using the bond-yield-plus-risk-premium approach, the cost of equity (%) for the company is closest to: A. 12.0 . B. 16.3 . C. 18.3