Question
US Steel has $3.16 billion in total debt (which approximates its market value). Interest expense for the year was about $214.0 million. The companys market
US Steel has $3.16 billion in total debt (which approximates its market value). Interest expense for the year was about $214.0 million. The companys market capitalization is approximately $1.17 billion, its market beta is 2.65, and its assumed tax rate is 37%. Assume that the risk-free rate equals 2.5% and the market premium equals 5%. US Steels cost of equity capital
| A) 15.75% | ||
| B) 9.13% | ||
| C) 13.25% | ||
| D) 14.13% |
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Option Volatility And Pricing Advanced Trading Strategies And Techniques
Authors: Sheldon Natenberg
2nd Edition
0071818774, 978-0071818773
