AMC has 10 million shares outstanding 400000 shares of 5 preferred stock and 200000 semi annual bonds with a 75 coupon selling at 95 of par with 14 years to maturity Common stock sells at 42share beta 175 and preferred stock at 90share with a par value of 100 The market risk premium is 85 T Bills are yielding 5 and corporate tax rate is 35

Answer rating: 100% (QA)

Cost of equity Risk free rate market risk premiumBe... View the full answer