Tele LLC has a beta of 1.4 and is trying to calculate its Cost of equity capital. If the risk-free rate of return is 9 percent and the average market return 14 percent, then what is the firm's after-tax cost of equity capital if the firmls marginal tax rate is 30 percent? Select one: O a. 22 % O b. None of these O c. 12 % O d. 16 %

Tele LLC has a beta of 1.4 and is trying to calculate its Cost of equity capital. If the risk-free rate of return is 9 percent and the average market return 14 percent, then what is the firm's after-tax cost of equity capital if the firmls marginal tax rate is 30 percent? Select one: O a. 22 % O b. None of these O c. 12 % O d. 16 %

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter12: The Cost Of Capital

Section: Chapter Questions

Problem 7P

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