Question: Based on Exhibit 2, the forward-looking estimate for the US equity risk premium is closest to:A.2.2%.B.5.8%.C.8.2%.Exhilita SAP 500 Index DataChen is now considering adding shares

Based on Exhibit 2, the forward-looking estimate for the US equity risk premium is closest to:A.2.2%.B.5.8%.C.8.2%.Exhilita SAP 500 Index DataChen is now considering adding shares of Bexak, Inc. to the portfolio. Chen asks Johanssan to ealculate Dezak's weighted average cost of capital using the CAPM with the information prowided in Exhibits.\table[[Pretax cost of debt,4.9%],[Lons-term debt as a percent ef total capital, at market value,25%],[Marginal tax rate,30%],[Eeraly Ine. Verta,2.00],[Estimated eguity rick premium,5.5%],[Risk-free rate,3.0%]]

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