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Archex Corp. is financed by a mixture of debt and equity. You have the following information about its cost of capital: (i) re = 22

Archex Corp. is financed by a mixture of debt and equity. You have the following information about its cost of capital: (i) re = 22 percent, (ii) beta of equity = 1.5 (iii) beta of debt = 0.25, (iv) rd = 12 percent, and (v) Debt-equity ratio = 1. Compute (1) rfree, (2) rmarket, (3) rassets, and (4) beta assets

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