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The following data pertains to Zonk Corp., a manufacturer of ball bearings (dollar amounts in millions): $7460 $3652 10.5% Total assets Interest-bearing debt Average pre-tax

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The following data pertains to Zonk Corp., a manufacturer of ball bearings (dollar amounts in millions): $7460 $3652 10.5% Total assets Interest-bearing debt Average pre-tax borrowing cost Common equity: Book value Market value Income tax rate Market equity beta $2950 $13685 35% 1.13 a. 2. Assuming that riskless rate is 4.6% and the market premium is 7.3%, calculate Zonk's cost of equity capital: 10.4% b. 7.69% 11.89% d. 8.28% c

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