question archive The following data pertains to Radek Corp, a manufacturer of office supplies (dollar amounts in thousands) Total assets $8,731 Interest-bearing debt $4,239 Average borrowing rate for debt 100% Common equity: Book value $3,130 Market value $16,284 Marginal income tax rate 35% Market equity beta 133 Using this information and assuming that the risk-free rate is 53% and the market risk premium is 73%, calculate Radek’s cost of equity capital, using the capital asset pricing model
The following data pertains to Radek Corp, a manufacturer of office supplies (dollar amounts in thousands) Total assets $8,731 Interest-bearing debt $4,239 Average borrowing rate for debt 100% Common equity: Book value $3,130 Market value $16,284 Marginal income tax rate 35% Market equity beta 133 Using this information and assuming that the risk-free rate is 53% and the market risk premium is 73%, calculate Radek’s cost of equity capital, using the capital asset pricing model
Subject:AccountingPrice: Bought3
The following data pertains to Radek Corp, a manufacturer of office supplies (dollar amounts in thousands)
Total assets $8,731
Interest-bearing debt $4,239
Average borrowing rate for debt 100%
Common equity:
Book value $3,130
Market value $16,284
Marginal income tax rate 35%
Market equity beta 133
Using this information and assuming that the risk-free rate is 53% and the market risk premium is 73%, calculate Radek’s cost of equity capital, using the capital asset pricing model
