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It is January 1 , 2 0 2 0 . Normal America, Inc. ( NA ) , has paid a year - end dividend in
It is January Normal America, Inc. NA has paid a yearend dividend in each of the last years, as shown by the table below.
a Calculate NAs beta with respect to the S&P
b Suppose that the Treasury bill rate is and that the expected return on the market is ErM If the corporate tax rate TC calculate NAs cost of equity using both the classic CAPM and taxadjusted model.
c Assume that NAs cost of debt is If the company is financed by equity and debt, what is its weighted average cost of capital using the CAPM model?
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