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i am stuck on this question QRP Company can sell common shares at $30 per share and can obtain debt funding at 8 percent. It
i am stuck on this question
QRP Company can sell common shares at $30 per share and can obtain debt funding at 8 percent. It has a marginal income tax rate of 25 percent. The yield on US Treasury securities is 3 percent. The market risk premium is 6.0 percent, and the firm's beta is 0.9 . It has a targeted debt-to-equity ratio of 1:1. What is its cost of equity? A. 8,1 percent B. 8.4 percent C. 8.0 percent D. Insufficient information is provided to calculate this answer E. 5.7 percent Step by Step Solution
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