Questions 4,5, and 6

Assuming that the riskless rate is 4.6% and the market premium is 7.3%, the cost of equity capital is 8.28%

Zonk Corporation Data $7,460 $3,652 10.5% Total assets Interest-bearing debt Average pretax borrowing cost Common equity: Book value Market value Income tax rate Market equity beta $2,950 $13,685 35% 1.13