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Hampton Corporation has a beta of 1 . 8 8 and a marginal tax rate of 2 1 % . The expected return on the

Hampton Corporation has a beta of 1.88 and a marginal tax rate of 21%. The expected return on the market is 10% and the risk-free interest rate is 2.39%. Estimate the firms cost of internal equity. SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE % SIGN. IF YOUR ANSWER IS 7.7000%, FOR EXAMPLE, ENTER 7.70.

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