Q33 Q34

Cadmium Electronics Inc. currently has a capital structure that is 40% debt and 60% equity. If the firm's cost of equity is 12%, the cost of debt is 8%, the risk-free rate is 3% and the firm pays no tax. what is the appropriate WACC? 1 pts Question 34 You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.6 and the total portfolio is equally as risky as the market, what must be the beta be for the other stock in your portfolio