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NEED SOLUTION IN 15 MINS OR GET DOWNVOTE FOR SURE. The total market value of the equity share of O.R.E. Company is 60,00,000 and the

NEED SOLUTION IN 15 MINS OR GET DOWNVOTE FOR SURE.

The total market value of the equity share of O.R.E. Company is 60,00,000 and the total value of the debt is 40,00,000. The treasurer estimate that the beta of the stock is currently 1.5 and that the expected risk premium on the market is 10 per cent. The treasury bill rate is 8 per cent. Required: i. What is the beta of the Company's existing portfolio of assets? ii. Estimate the Company's Cost of capital and the discount rate for an expansion of the company's present business

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