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Equity Information 5 0 million shares $ 8 0 per share Beta = 1 . 1 5 Market risk premium = 9 % Risk

Equity Information

50

million shares $

80

per share Beta

= 1.15

Market risk premium

= 9 % "

Risk

-

free rate

= 5 %

Debt Information $

1

billion inoutstanding debt

(

face value

)

Current quote

= 110

Coupon rate

= 9 %,

semiannual coupons

15

years to maturity Tax rate

= 21 % 14 - 23

Calculate I

/

Y WITHOUT a financial calculator

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