The market value of the Company's common stock is $30 million, and the market value of its risk-free debt is $10 million. The beta of
The market value of the Company's common stock is $30 million, and the market value of its risk-free debt is $10 million. The beta of the company's common stock is 1.45, and the market risk premium is 12 percent. If the Treasury bill rate is 4 percent, what is the company's cost of capital (WACC) assuming no taxes (tax rate=0%)?
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Authors: Paula H. Song, Kristin L. Reiter
3rd Edition
1567939759, 978-1567939750
