Question
If the historical return over the past 30 years of the S&P 500 Index is 8% and the risk-free rate (as measured by the 10-Year
If the historical return over the past 30 years of the S&P 500 Index is 8% and the risk-free rate (as measured by the 10-Year Treasury Note) is 3%, what is the equity cost of capital for Summa Corp? If Summa's debt trades at Treasuries plus 1.25% what is Summa's WACC? What two factors are the biggest determinants of equity cost?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
