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1) 2) Suppose that the risk-free rate of interest is 2 percent and the...

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Finance

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Suppose that the risk-free rate of interest is 2 percent and the market risk premium is 5 percent. If a company's stock beta is 1.2, the return on this company's stock is closest to: 5.6 percent 8 percent 7 percent 8.4 percent The Inc Company has debt with a face value of $250,000 that pays a 12% coupon. Inc has a tax rate of 25%. The interest tax-shield is closest to $11,750 $9,500 $13,750 $7,500

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