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Good-S services Inc., a healthcare services company is considering purchasing the assets of HealthSoon, a small company that providing healthcare. Good-S services Inc.'s equity beta

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Good-S services Inc., a healthcare services company is considering purchasing the assets of HealthSoon, a small company that providing healthcare. Good-S services Inc.'s equity beta is 0.50 and it has a debt-to-total assets ratio is 0.24 and can borrow at 10%. Good-S does not plan to use debt to finance this purchase and it plans to keep the HealthSoon as an all-equity fimm for the foreseeable future. The finance group has collected the following data from publicly traded firms Equity debt to beta equity ratio Pepsi (soft drinks) 0.40 0.70 Deer Top (agricultural) 0.60 0.30 Krafty (consumer food) 0.50 0.40 G&G (Healthcare) 1.10 0.30 Centaury (Solar energy) 1.80 0.10 Elies (Healthcare) 1.30 0.40 FZ (Financiall services) 1.20 0.50 City Sounds (Electronics) 1.05 0.20 The risk-free rate is 3% and the expected market return is 17%. The tax rate is 20% What is the discounting rate to use for the acquisition of HealthSoon? Do not enter the symbol, use two decimals. For example, if you obtain 6.537% then enter 6.54 if you obtain 0.07 then etter 7.00 Your

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