A company's shares have a volatility ratio () equal to 1.1. In market value, its own resources

A company's shares have a volatility ratio (β) equal to 1.1. In market value, its own resources (shares) represent 45% of its total sources of financing. It is known that in the market, the return that can be obtained without risk is 5% and that the expected return of the market portfolio is 8.5%. Finally note that the EMBI+ is 845 points and the tax on profit is 25%. Find

1) Shareholder Opportunity Cost 

2) WACC or Weighted Average Cost of Capital if the cost of debt is 6%

Answer rating: 100% (QA)

1 Calculate the Required Rate of Return for Equity Shareholder Opportunity Cost The required rate of ... View the full answer