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Posted on Jul 11, 2024

The cost of capital for a firm with a 60/40 debt/equity split, 3.67% cost of debt, 15% cost of equity, and a 35% tax rate

The cost of capital for a firm with a 60/40 debt/equity split, 3.67% cost of debt, 15% cost of equity, and a 35% tax rate would be 2 The risk free rate currently have a return of 2.5% and the market risk premium is 5.76%. If a firm has a beta of 1.42, what is its cost of equity

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