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You are a business advisor for Teddy Bears Corporation. You were asked to help find company discount rate. The company has a loan of $10

You are a business advisor for Teddy Bears Corporation. You were asked to help find company discount rate. The company has a loan of $10 million with 5% interest. The company's 200,000 common stocks are traded at $56 per share. The beta of the stocks is 1.02. The effective corporate tax rate is 28%. The market risk premium is given as 6.2%, and the current Treasury bill rate is 3.4%.


Calculate the discount rate the company will use to evaluate its projects.

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