d.

wc=0.5;wd=0.5

i\ Group\ Group, at\ ading producer of custom automobile accessories, has hion are provided below.\ Assets\ current assets\ Net plant, property, and equipment\

$139,000,000

\ Total assets\ Liabilities and Equity\ Accounts payable\ Accruals\ Current liabilities\ Long-term debt bonds,

$1,000

par value)\

$10,000,000

\ Total liabilities\ Common stock shares)\

$19,000,000

\ Retained earnings\ Total shareholders' equity\ Total liabilities and shareholders' equity\ \\\\table[[

40,000,000

Collins Group c. we 0.7; wd=0.3; WA d. we 0.6; wd=0.4; WACC=10. e wc 0.5; wd=0.5; WACC=10.18% The Collins Group, a leading producer of custom automobile accessories, has hired yo Assets weighted average cost of capital. The balance sheet and some other information are provided below. Current assets Net plant, property, and equipment Total assets often (m) beg hes Gansomone Liabilities and Equity (304 $ 38,000,000 101,000,000 $139,000,000 60. D comp used ha WOU Accounts payable Accruals Current liabilities Long-term debt (40,000 bonds, $1,000 par value) Total liabilities Common stock (10,000,000 shares) Retained earnings Total shareholders' equity $ 10,000,000 9,000,000 $19,000,000 old 40,000,000 $59,000,000 ver25182 30,000,000 50,000,000 80,000,000 ker has Total liabilities and shareholders' equity $139,000,000 The stock is currently selling for $15.25 per share, and its noncallable $1,000 par value, 20-year, 7.25% bonds with semiannual payments are selling for $875.00. The beta is 1.25, the yield on a 6-month Treasury bill is 3.50%, and the yield on a 20-year Treasury bond is 5.50%. The required return on the stock market is 11.50%, but the market has had an average annual return of 14.50% during the past 5 years. The firm's tax rate is 40%. 58. Refer to the data for the Collins Group. Based on the CAPM, what is the firm's cost of common stock? a. 11.15% b. 11.73% c. 12.35% d. 13.00% 08 02 buse. 13.65% 02.0