Intro Consider the following information for Clinkle Company: Stock information: • Stock price: $54 • Number of shares outstanding: 18 million • Beta: 1.4 Bond information: • Value of debt: $680 million • Pre-tax cost of debt: 6.5% Other information • Tax rate: 21% • Government bond interest rate: 3% • Expected return on the S&P 500: 6% Part 1 What is the cost of equity? 3+ decimals Submit

Intro Consider the following information for Clinkle Company: Stock information: • Stock price: $54 • Number of shares outstanding: 18 million • Beta: 1.4 Bond information: • Value of debt: $680 million • Pre-tax cost of debt: 6.5% Other information • Tax rate: 21% • Government bond interest rate: 3% • Expected return on the S&P 500: 6% Part 1 What is the cost of equity? 3+ decimals Submit

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter31: Capital Markets

Section: Chapter Questions

Problem 5E

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