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The following financial statement data pertains to ABC company: Total assets $195,250 Interest-bearing debt (market value) Average borrowing cost 11.25% $100,900 Common Equity: Book Value
The following financial statement data pertains to ABC company: Total assets $195,250 Interest-bearing debt (market value) Average borrowing cost 11.25% $100,900 Common Equity: Book Value $ 42,150 Market Value $151,350 Marginal Income Tax Rate 37% Market Beta 1.08 Expected Market Premium 7.5% Risk-free interest rate 4.5% Round ALL percent answers to 1 decimal (xxx%) The cost of equity capital is (insert answer box 1, round to 1 decimal). The weight on debt capital to be used to determine the weighted average cost of capital is (insert answer box 2, round to 1 decimal). The total weighted-average cost of capital is (insert answer box 3, round to 1 decimal)
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