Question

Zycor Corporation obtains most of its funding internally. Assume that the stock has a beta of 1.2, the riskless rate is 6.5%, and the market risk premium is 6%.
a. Estimate the cost of internal equity.
b. Now assume that the cost of issuing new stock is 5% of the proceeds. Estimate the cost of external equity.


$1.99
Sales0
Views99
Comments0
  • CreatedApril 15, 2015
  • Files Included
Post your question
5000