Company A is located in Italy and it is not listed. It sells premium-price cosmetics pro the Euro Zone. You want to estimate its cost of capital. You know the following accounts from the Income Statement 2019 and the Balance Sheet 2019. Revenues = 1,000 mln EBITDA = 350 mln Financial costs to banks = 80 mln Equity = 300 mln Liabilities (excluding Equity) = 800 mln Bank Debts = 600 mln Additionally, you know that the corporate tax rate is 35% and the risk-free rate is 0,78%. Finally, while the FTSE MIB is forecasted at 12%, the Euro Stoxx return at 10%, and the S&P500 at 14%. The financial newspaper that you are reading reports financial data about potential comparable companies. Company B sells genetics-based pharmaceuticals in the Far East emerging markets and its BU = 0.93. Company C sells high-quality cosmetics products in the Euro Zone and its BU = 0.51. Company D sells high-quality cosmetics products in the Euro Zone and its BU = 0.49. Considering the available information, what is the estimation of the cost of equity (ke) for Company A? (bannoB: 4) Oke = around 11.4% ke = around 14.4% Michela Arnab 0 ke = around 13.6% Company A is located in Italy and it is not listed. It sells premium-price cosmetics pro the Euro Zone. You want to estimate its cost of capital. You know the following accounts from the Income Statement 2019 and the Balance Sheet 2019. Revenues = 1,000 mln EBITDA = 350 mln Financial costs to banks = 80 mln Equity = 300 mln Liabilities (excluding Equity) = 800 mln Bank Debts = 600 mln Additionally, you know that the corporate tax rate is 35% and the risk-free rate is 0,78%. Finally, while the FTSE MIB is forecasted at 12%, the Euro Stoxx return at 10%, and the S&P500 at 14%. The financial newspaper that you are reading reports financial data about potential comparable companies. Company B sells genetics-based pharmaceuticals in the Far East emerging markets and its BU = 0.93. Company C sells high-quality cosmetics products in the Euro Zone and its BU = 0.51. Company D sells high-quality cosmetics products in the Euro Zone and its BU = 0.49. Considering the available information, what is the estimation of the cost of equity (ke) for Company A? (bannoB: 4) Oke = around 11.4% ke = around 14.4% Michela Arnab 0 ke = around 13.6%