Frinkey is large producer of fluff. its beta is 1

The risk free rate is 5%, the expected market return is 9%.

The firm has Total invested capital of $3,000.

It has $500 in debt and its tax rate is 40%.

Use the firms levered Beta to calculate its required return at this level of debt.

(2pts)

7.62%

11.4%

7.63%

9.48%