Practice Assignment #8 Question 19 (1 point)...

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Finance

Practice Assignment #8

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Question 19 (1 point) Given the following information, calculate the cost of equity (retained earnings) for the firm: R = 3%; R = 11% & b = 1.25 (Use CAPM) Question 20 (1 point) Given the following information, calculate the required rate of return (cost of equity) for the firm A. [Use CAPM] Rp = 3%; E(RM)= 13% & bA=0.8 O 11% O O O Question 21 (1 point) If the before tax cost of debt is 9.6%; and the tax rate is 21%; calculate the after tax cost of debt: (approximately) 3.85% O 12.15% 16.92% 07.58%

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