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Apple Inc. is currently equity-financed only with a beta of 1.1. Its tax rate is 35%. Risk-free rate and market risk premium are both 7%.
Apple Inc. is currently equity-financed only with a beta of 1.1. Its tax rate is 35%. Risk-free rate and market risk premium are both 7%. Calculate the cost of equity if Apple Incs capital structure consists of 30% debt and 70% equity.
a. 0.157 | ||
b. 0.168 | ||
c. 0.184 | ||
d. 0.191 | ||
e. 0.233 | ||
f. No enough information |
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