colstate.view..usg.edu MyCSU Quizzes- Managerial Fac Ente 678 nance X. As ALILEO
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colstate.view..usg.edu MyCSU Quizzes- Managerial Fac Ente 678 nance X. As ALILEO I Logged in as landers-ashleigh |-11/10/2017. Locker STATE Managerial Finance XLS Group B8 Fall Semester 2017 CO ERSITY 11 Rubrics l ser Assessment Class Discussions |Assignments Quizzes | V Grades Groups Quiz 13- Cost of Capital - Quiaz shleigh Landers: Attempt 1 The Up and Coming Corporation's common stock has a beta of 1.10 on the market is 10 percent, Up and Coming's cost of equity is If the risk-free rate is 6.0 percent and the expected return 9.4% 11.40% 0 12.80% 1 1.60% o 10.40% Save Question 8 (10 points) Diminy's Cricket farm issued a 30-year, 12 percent face value. The company's s t semiannual bond 4 years ago. The bond currently selis for 115 percent of ts of debt is s tax rate s 34 percent. The company's cost 8,62% 11.56%Explanation / Answer
Cost of equity is 10.4% Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up Statementshowing Computations Paticulars Amount Beta, B 1.1 Return on Market, Rm 10.00% Risk Free Rate, Rf 6.00% Ke = Rf+ B(Rm-Rf) Ke = 6% + 1.1(10%- 6%) Ke = 6% + 1.1(4%) Ke = 6% + 4.4% Ke = 10.4%
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