Currently the S&P is returning 12% while Treasury bills are returning 4%. The MRP is estimated to be 8%. The beta for MNG stock is estimated to be 1.4. What is the after-tax cost of this firm’s equity? Assume a tax rate of 40%.
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Currently the S&P is returning 12% while Treasury bills are returning 4%. The MRP is estimated to be 8%. The beta for MNG stock is estimated to be 1.4. What is the after-tax cost of this firm’s equity? Assume a tax rate of 40%.
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