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Suppose it's January 2021 and you would like to estimate the unlevered cost of capital (ru) for Cowbell Corp. The current share price of Cowbell

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Suppose it's January 2021 and you would like to estimate the unlevered cost of capital (ru) for Cowbell Corp. The current share price of Cowbell is $18 and there are 10 million shares outstanding. You have estimated Cowbell's equity beta as 1.25, and its cost of debt (rD) as 2.75%. The risk-free rate is 1.9% and the market risk premium is 5%. In addtion, the table below shows the current balance sheet of the firm. Assume that all cash and short-term investments are excess cash. Based on the information provided, what is the best estimate the unlevered cost of capital for Cowbell? Select one. 1.6.80% 2.5.02% 3.5.60% 4. 8.15% 5.6.91% Suppose it's January 2021 and you would like to estimate the unlevered cost of capital (ru) for Cowbell Corp. The current share price of Cowbell is $18 and there are 10 million shares outstanding. You have estimated Cowbell's equity beta as 1.25, and its cost of debt (rD) as 2.75%. The risk-free rate is 1.9% and the market risk premium is 5%. In addtion, the table below shows the current balance sheet of the firm. Assume that all cash and short-term investments are excess cash. Based on the information provided, what is the best estimate the unlevered cost of capital for Cowbell? Select one. 1.6.80% 2.5.02% 3.5.60% 4. 8.15% 5.6.91%

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