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A firm's stock has a market a capitalization of 220 million and an equity beta of 0.86. The firm's debt cost of capital
Posted: Mon May 02, 2022 9:40 am
by answerhappygod
- A Firm S Stock Has A Market A Capitalization Of 220 Million And An Equity Beta Of 0 86 The Firm S Debt Cost Of Capital 1 (94.19 KiB) Viewed 26 times
A firm's stock has a market a capitalization of 220 million and an equity beta of 0.86. The firm's debt cost of capital is 6.2% and their asset cost of capital is 9.8%. The risk free rate is 3.1% and the expected return of the market portfolio is 13.7%. Suppose that the CAPM assumptions hold. Calculate the amount of outstanding debt held by the firm. 148 million 121 million 0 112 million 139 million O 130 million