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Question 9 Risk-free rate 0.016 A firm has a $50,000,000 loan with an interest rate of 4%, a $54,100,000 bond issue with a yield to
Question 9 Risk-free rate 0.016 A firm has a $50,000,000 loan with an interest rate of 4%, a $54,100,000 bond issue with a yield to maturity of 3%, and 10,000,000 shares of stock selling at $3.47 a share. The stock's required return is 14.8%. Find the firm's cost of capital. None of the answers is correct 5.6% Market rate 0.136 6.3% Not enough information Tax rate 0.30 8 pts
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