Cost of Equity Assignment | Homework For You
June 3rd, 2020
Company Zen Ten is currently financed by 50% debt and 50% equity and has an equity beta of 1.20. Assume debt beta=0. The expected market return is 8%, risk-free rate is 3%, and corporate tax rate is 20%. If the company were financed by 100% equity, what would be its cost of equity? O A. 6.33% O B. 6.91% O C. 7.74% O D. 8.00% O E. 9.00% O F. 13.80%. Get Finance homework help today
