Question
You've been monitoring Bletchley Park Corporation and have calculated the following information. The company has a debt to asset ratio of 57.45%, market beta of
You've been monitoring Bletchley Park Corporation and have calculated the following information. The company has a debt to asset ratio of 57.45%, market beta of 1.26, unlevered beta of 0.72 ( at a 40% marginal tax rate), and a cost of equity of 13.67%. The risk free rate is 1.8% . The risk premium due to financial risk is closest to?
- 57%
- 43%
- 65%
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Mergers Acquisition And Other Restructuring Activities
Authors: Donald M. Depamphilis
6th Edition
123854857, 978-0123854858
