premium of 7 percent, and has a market value of debt to market value of equity ratio of 60 percent, what does the the firm to generate in terms of equity returns using CAPM? ??. 11.6% If a firm has a market beta of 0.9, is subject to an income tax rate of 35 pereent, has a risk-free rate of 6 percent, a market risik ? ?. 12.396 O d. 9.4%