Question
Please show all steps! Thank you! The stock of Pace Inc. has a beta of 1.55 and a market value of equity of $17 million.
Please show all steps! Thank you!
The stock of Pace Inc. has a beta of 1.55 and a market value of equity of $17 million. The expected return on the market is 9% and the Treasury bill rate is 3%. If the company's cost of capital is 9.75%, what is the market value of the company's risk-free debt?
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Multinational financial management
Authors: Alan c. Shapiro
10th edition
9781118801161, 1118572386, 1118801164, 978-1118572382
