7. The following data pertains to Xena Corp.

Xena Corp. Total Assets Interest-Bearing Debt (market value) Average borrowing rate for debt Common Equity: Book Value Market Value Marginal Income Tax Rate Market Beta Select one: a. 10.6% b. 13.9% $18,888 $8,856 10.2% Using the information from the table, and assuming that the risk-free rate is 4.5% and the market risk premium is 6.2%, calculate Xena's cost of equity capital, using the capital asset pricing model: c. 14.7% d. 15.1% $4,920 $20,664 37% 1.71

The following data pertains to Xena Corp. Using the information from the table, and assuming that the risk-free Select one: a. 10.6% b. 13.9% c. 14.7% d. 15.1%