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ulearn.jwu.edu Troat * Question Completion Status: QUESTION 14 Using the information from the table, and assuming that the risk-free rate is45% and the market risk

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ulearn.jwu.edu Troat * Question Completion Status: QUESTION 14 Using the information from the table, and assuming that the risk-free rate is45% and the market risk premium s 62%, calculate Xena's cost of equity capita using the capital asset pricing model: Xena Corp Total Assets Interest-Bearing Debt (market value) Average borrowing rate for debt Common Equity Book Value Market Value Marginal Income Tax Rate Market Beta $23,610 $11,070 10.2% $6,150 $25,830 37% 1.73 10.4% o 13.4% o 15.2% 8.9%

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