SmartCar ASA has an investment beta of 1.3, and the risk-free rate is 4%. The...
90.2K
Verified Solution
Link Copied!
Question
Finance
SmartCar ASA has an investment beta of 1.3, and the risk-free rate is 4%. The expected return on the market portfolio is 11%, and the corporate tax-rate is 27%. There are no personal taxes. The cost of debt is 5%, and the debt-to-value is 40% based on market values.
What is SmartCars cost of equity if the company is financed by equity only?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.