Question
Nodebt Inc. is a firm with all-equity financing. Its equity beta is .80. The Treasury bill rate is 3%, and the market risk premium is
| Nodebt Inc. is a firm with all-equity financing. Its equity beta is .80. The Treasury bill rate is 3%, and the market risk premium is expected to be 7%. |
| a. | What is Nodebts asset beta? (Round your answer to 2 decimal places.) |
| Asset beta |
| b. | What is Nodebts WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) |
| WACC | % |
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Beer Business Finance
Authors: Kary R Shumway
1st Edition
1090833741, 978-1090833747
