Question
A company has 700,000 shares of stock outstanding that sell for $14.75 per share. The company has a beta of 1.35. Assume the risk-free rate
A company has 700,000 shares of stock outstanding that sell for $14.75 per share. The company has a beta of 1.35. Assume the risk-free rate is 4%, the market risk premium is 6%, and the corporate tax rate is 30%. What is the market value of this company's equity?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
