M M Proposition 2 Assume that capital markets are perfect, then calculate the cost of debt for a group of firms that each average cost of capital of 16 6 , and the following equity value and expected return Firm A $2 3 million of equily with a 26 expected return Firm B $2 8 million of equity with a 23 expected return Firm C $3 4 million of equity with a 20 expected return Ignoring taxes, the cost of debt for Firm A is Ignoring taxes, the cost of debt for Firm B is Ignoring taxes, the cost of debt for Firm C is (Round to two decimal places ) (Round to two decimal places ) (Round to two decimal places ) M M Proposition 2 Assume that capital markets are perfect, then calculate the cost of debt for a group of firms that eac average cost of capital of 16 6 , and the following equity value and expected return Firm A $2 3 million of equily with a 26 expected return Firm B $2 8 million of equity with a 23 expected return Firm C $3 4 million of equity with a 20 expected return Ignoring taxes, the cost of debt for Firm A is (Round to two decimal places ) Ignoring taxes, the cost of debt for Firm B is (Round to two decimal places ) Ignoring taxes, the cost of debt for Firm C is (Round to two decimal places ) te the cost of debt for a group of firms that each are worth $6 3 million, have a weighted ed return places ) I places )

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M M Proposition 2 Assume that capital markets are perfect, then calculate the cost of debt for a group of firms that each average cost of capital of 16 6 , and the following equity value and expected return  Firm A  $2 3 million of equily with a 26  expected return Firm B  $2 8 million of equity with a 23  expected return Firm C  $3 4 million of equity with a 20  expected return Ignoring taxes, the cost of debt for Firm A is Ignoring taxes, the cost of debt for Firm B is Ignoring taxes, the cost of debt for Firm C is        (Round to two decimal places )    (Round to two decimal places )    (Round to two decimal places ) M  M Proposition 2 Assume that capital markets are perfect, then calculate the cost of debt for a group of firms that eac average cost of capital of 16 6 , and the following equity value and expected return  Firm A  $2 3 million of equily with a 26  expected return Firm B  $2 8 million of equity with a 23  expected return Firm C  $3 4 million of equity with a 20  expected return Ignoring taxes, the cost of debt for Firm A is     (Round to two decimal places ) Ignoring taxes, the cost of debt for Firm B is     (Round to two decimal places ) Ignoring taxes, the cost of debt for Firm C is     (Round to two decimal places ) te the cost of debt for a group of firms that each are worth $6 3 million, have a weighted ed return  places ) I places )

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M&M Proposition 2 Assume that capital markets are perfect, then calculate the cost of debt for a group of firms that each average cost of

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