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Question 11 (2 points) The current market rate of return is 9% and the risk-free rate is 3%. You have been given the job of

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Question 11 (2 points) The current market rate of return is 9% and the risk-free rate is 3%. You have been given the job of determining your firm's cost of capital components. The company has 1300000 shares outstanding with a current value of $23.70 per share. The debt represents 24% of the capital structure and the yield to maturity is 5%. The beta of the equity is 1.5 and the tax rate is 30%. What is the market value of debt and its net cost to the firm? The market value of debt is $23,415,600.00 and the net cost of debt is 1.50%. The market value of debt is $9.729,473.68 and the net cost of debt is 3.50%. The market value of debt is $7,394,400.00 and the net cost of debt is 3.50% The market value of debt is $128,375,000.00 and the net cost of debt is 5,00%

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