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

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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