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The following data pertains to Xena Corp. Using the information from the table, and assuming that the risk-free rate is 4.5% and the market risk
The following data pertains to Xena Corp. Using the information from the table, and assuming that the risk-free rate is 4.5% and the market risk premium is 6.2%, calculate Xenas weighted-average cost of capital: Xena Corp.
Total Assets $21,249
Interest-Bearing Debt (market value) $9,963
Average borrowing rate for debt 10.2%
Common Equity:
Book Value $5,535
Market Value $23,247
Marginal Income
Tax Rate 37%
Market Beta 1.64
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