Kyle has a new business opportunity, but his company needs to raise an additional $5,000,000 for the new project. Kyle wants to know the cost of this capital if he chooses to raise funds by selling common stock. He knows that the expected return on the market is 12% and the current risk-free rate is 3%. He also knows that his company and this project have a 0.8 beta. What is the cost of capitals and PV of this business.?

Answer rating: 100% (QA)

To calculate the cost of capital for raising funds through selling common stock you can use the ... View the full answer