Question7 6 p The following data pertains to Zolar Corp, a manufacturer of ball bearings (dollar amounts in millions). Total Assets Interest-Bearing Debt Average Pre-tax borrowing cost Common Equity: $6,840 $3,562 11.5% Book Value $2,560 Market Value $12,850 Income Tax Rate 35% Market Equity Beta 1.24 Assuming that riskless rate is 42% and the market premium is 6.2%, calculate Zolar's cost of equity capital ie. the required rate of return on equity; 104% 2.0% ? 7.69% IEF 11.89%