yield-to-maturity on long-term government bonds 3.4%. Yield-to maturity on TM Industry's long-term bonds 8.1%. Market risk...
yield-to-maturity on long-term government bonds 3.4%.
Yield-to maturity on TM Industry's long-term bonds 8.1%.
Market risk premium 6%
estimated company equity beta 1.4
stock prince per share $30.00
number of share outstanding 60 million
TM industries debt value $1.2 million
tax rate 25%
1. It's cost of equity capital is what?
a. 8.16%
b. 9.98%
c. 7.04%
d. 11.08%
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