Question
ABC's common stock market value is $10 million, and the market value of its risk-free debt is $10 million. ABC's beta is 1.37, and the
ABC's common stock market value is $10 million, and the market value of its risk-free debt is $10 million. ABC's beta is 1.37, and the market risk premium is 0.13. If the T-bill rate is 0.05, what is ABC's cost of capital? (Assume no taxes.)
[round to 2 decimal places]
any as a DECIMAL PLEASE
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Finance For Managers
Authors: E. Martinez Abascal
1st Edition
0077140079, 9780077140076
