Tesco’s stock currently has a beta of 0.58. If the risk-free rate is 3.9% and the expected return of the market portfolio is 9.9%, what is Tesco’s equity cost of capital? 

 Onida Systems has 5 million shares outstanding trading for $20 per share. In addition, Onida has $50 million in outstanding debt. Onida’s equity cost of capital is 15%, its debt cost of capital is 10%, and the corporate tax rate is 30%. Calculate Onida’s weighted average cost of capital?

Answer rating: 100% (QA)

1 Tescos Equity Cost of Capital ERi Rf betaiERm Rf Where ERi is the equity cost of capital for Tesco ... View the full answer