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A firm's stock has a market capitalization of 420 million and an equity beta of 1.13. The firm's debt cost of capital is 7.9% and
A firm's stock has a market capitalization of 420 million and an equity beta of 1.13. The firm's debt cost of capital is 7.9% and their asset cost of capital is 14.4%. The risk free rate is 2.1% and the expected return of the market portfolio is 14.8%. Suppose that the CAPM assumptions hold. Calculate the amount of outstanding debt held by the firm. O 125 million O 148 million O 140 million 133 million O 117 million
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