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Calculate the cost of equity, and the weighted average cost of capital for a company AMJ Corp based on the following information [15 points] The
Calculate the cost of equity, and the weighted average cost of capital for a company AMJ Corp based on the following information [15 points] The beta for AMJ stock is 1.2. The standard deviation of stock return for AMJ is 18%. The risk free rate of interest is 3.5%. The cost of debt for the company is 7.5%. Corporate tax rate is 40%. Debt constitutes 35% of the companys capital structure. The expected return on a market portfolio is 13%.
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