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c) Your firm has no debt financing and a market value of equity of $60 billion. The stock's beta is 1.2, the risk-free rate is

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c) Your firm has no debt financing and a market value of equity of $60 billion. The stock's beta is 1.2, the risk-free rate is 5%, and the historical market risk premium. ([ Mkal), FER-ris 6% There are no corporate taxes or other market imperfections. What is the equity cost of capital based on the CAPM? (5 marks) it. What is the firm's weighted average cost of capital (WACC)

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