The market value of XYZ Corporation 's common stock is 40 million and the market value of the risk free debt is 60 million The beta of the company 's common stock is 0 8, and the expected market risk premium is 10 If the Treasury bill rate is 6 , what is the firm 's cost of capital (Assume no taxes...

The market value of XYZ Corporation's common stock is 40 million and the market value of the

Question:

The market value of XYZ Corporation's is 40 million and the market value of the risk-free debt is 60 million. The beta of the company's is 0.8, and the expected market risk premium is 10%. If the Treasury bill rate is 6%, what is the firm's cost of capital? (Assume no taxes.)
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...