Question: 10-5 If the risk free rate or return rRF = 9%, market average retum M = 13%, beta b= 1.6. what's the required rate of

10-5 If the risk free rate or return rRF = 9%, market average retum M = 13%, beta b= 1.6. what's the required rate of return for equity capital, using CAPM model? 10-8 Probable Effect on Id(1-1). TE WACC a. The corporate tax rate is lowered. b. The Federal Reserve tightens credit. C. The firm uses more debt; that is, it increases its debt/assets ratio. d. e. The dividend payout ratio is increased. I The firm doubles the amount of capital it raises during the year. The fim expands into a risky new area. 1. g. The firm merges with another firm whose earnings are counter-cyclical both to those of the first firm and to the stock market h. The stock market falls drastically, and the firm's stock falls along with the rest

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