Assuming that the riskless rate is 2.3% and the market premium is 5.3%, calculate Zonks cost of equity capital: Answer is 8.28%

A. 10.4%

B. 7.69%

C. 11.89%

D. 8.28%

Strong- Intense L Subs, En- Emphasis | Headng 7 ,,O Spa. ._ . Prompt: After reviewing the data in the table, respond to the problems below.Indicate the answer you believe is correct tonk Corporation Data $7,460 Total assets Interest-bearing debt Average pretax borrowing cost Common equity 3,652 10.5% 52,950 13,685 Market equity beta Question 1: Assume that Zonk is a potential leveraged buyout candidate. Assume that the buyer intends to put in place a capital structure that has 70 percent debt with a pretax borrowing cost of 14 percent and 30 percent common equity Compute the weighted average cost of capital for Zonk based on the new capital structure. 8.85% 13.02% D. 9.94% am contuned about thi, question, please show readable workout and formula please. I am getting an answer for either 8.85% or 9.94% Type here to search WE