Terex company has a beta of 1.7 and is trying to calculate its cost of equity capital. If the risk-free rate of return is 5 percent and the average market return 16 percent, then what is the firm's after-tax cost of equity capital if the firm's marginal tax rate is 30 percent? Select one: a. 22.8 % b. 22.5 % c. 23.7 % d. None of these
Terex company has a beta of 1.7 and is trying to calculate its cost of equity capital. If the risk-free rate of return is 5 percent and the average market return 16 percent, then what is the firm's after-tax cost of equity capital if the firm's marginal tax rate is 30 percent? Select one: a. 22.8 % b. 22.5 % c. 23.7 % d. None of these
Chapter12: The Cost Of Capital
Section: Chapter Questions
Problem 7P
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Terex company has a beta of 1.7 and is trying to calculate its
a. 22.8 %
b. 22.5 %
c. 23.7 %
d. None of these
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