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This question is about the Capital Asset Pricing Model (CAPM) and cost of capital. Suppose a business had the following characteristics: Market Value of Equity

This question is about the Capital Asset Pricing Model (CAPM) and cost of capital. Suppose a business had the following characteristics: Market Value of Equity = $22,000,000; Debt = $15,000,000; Cash or Cash Equivalents = $15,000,000 iD = 0.10 or 10% iMKT = 0.17 or 17% Corp = 0.30 or 30% K = 1.5 IRF = 0.02 = 2% Solve for the enterprise value of this business. Show your work.

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