Question 21 4 pts Isabella invested in a stock for five years. The annual return over the past five years were: 28.5%, 3
Posted: Wed May 18, 2022 11:46 pm
Company A is financed by 33% of debt and the rest of the
company is financed by common equity. The company’s before-tax cost
of debt is 5%. Currently the risk-free rate is 1.5%, the market
risk premium is 6%, and the stock has a beta of 1.4. If company A
faces a marginal tax rate of 30%, its weighted average cost of
capital (WACC) should be _____
Question 21 4 pts Isabella invested in a stock for five years. The annual return over the past five years were: 28.5%, 37.5%, -2.7%, 37.2%, and 39.2%, respectively. What was her average annualized rate of return over the past five years? (Note: Round your answer to 3 decimal places. For example, if your answer is 8.7%, you should write 0.087 in the answer box. DO NOT write 8.7 in the box as you will be marked wrong).
Q2 company is financed by common equity. The company’s before-tax cost
of debt is 5%. Currently the risk-free rate is 1.5%, the market
risk premium is 6%, and the stock has a beta of 1.4. If company A
faces a marginal tax rate of 30%, its weighted average cost of
capital (WACC) should be _____
Question 21 4 pts Isabella invested in a stock for five years. The annual return over the past five years were: 28.5%, 37.5%, -2.7%, 37.2%, and 39.2%, respectively. What was her average annualized rate of return over the past five years? (Note: Round your answer to 3 decimal places. For example, if your answer is 8.7%, you should write 0.087 in the answer box. DO NOT write 8.7 in the box as you will be marked wrong).