subject
Business, 16.07.2020 01:01 priceisright11401

The company uses the CAPM to estimate its cost of common equity, rs. The risk-free rate is 5% and the market risk premium is 6%. LeCompte estimates that if it had no debt its beta would be 1.0. (Its "unlevered beta," bU, equals 1.0.) The company's tax rate, T, is 40%. On the basis of this information, what is LeCompte's optimal capital structure, and what is the firm's cost of capital at this optimal capital structure?

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 18:20
Write two goals for yourself that will aid you in pursuing your post-secondary education or training. with this
Answers: 1
question
Business, 22.06.2019 09:50
Acar manufacturer uses new machines that automatically assemble an engine from parts fed to the system. the machine can regulate the speed ofassembly depending on the number of parts produced. which type of technology does this machine use? angenoem mense wat ons in matin en esta va ser elthe machine uses
Answers: 3
question
Business, 22.06.2019 23:00
Investors who put their own money into a startup are known as a. mannequins b. obligators c. angels d. borrowers
Answers: 1
question
Business, 23.06.2019 00:00
Both renewable and nonrenewable resources are used within our society. how do the uses of nonrenewable resources compare to the uses of renewable resources?
Answers: 1
You know the right answer?
The company uses the CAPM to estimate its cost of common equity, rs. The risk-free rate is 5% and th...
Questions
question
Mathematics, 22.02.2021 04:00
question
Mathematics, 22.02.2021 04:00
question
Mathematics, 22.02.2021 04:00
question
Mathematics, 22.02.2021 04:00
Questions on the website: 13722363