(Lecture 10 - Asset Cost of Capital and Lecture 11 - Capital Budgeting and Valuation with...

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(Lecture 10 - Asset Cost of Capital and Lecture 11 - Capital Budgeting and Valuation with Leverage) Your company currently has a stock price of $18 per share. There are 100,000 shares outstanding. The stock has a beta of 1.5. The risk-free rate is 2%. The expected market return is 6%. The company also has 2,000 bonds outstanding. The current price of the bonds is $1,100. Its debt beta is 0.2. Your company faces a tax rate of 21% and has a zero cash balance. Suppose the company is considering a project with the same risk and the mix of debt and equity as the company. The project's cost of capital is, %. Instruction: Type ONLY your numerical answer in the unit of percentage. % sign is already there. Thus, so don't input the % sign. Round to the nearest two decimal places. E.g., if your cost of capital is 10.136%, then input 10.14. (Lecture 10 - Asset Cost of Capital and Lecture 11 - Capital Budgeting and Valuation with Leverage) Your company currently has a stock price of $18 per share. There are 100,000 shares outstanding. The stock has a beta of 1.5. The risk-free rate is 2%. The expected market return is 6%. The company also has 2,000 bonds outstanding. The current price of the bonds is $1,100. Its debt beta is 0.2. Your company faces a tax rate of 21% and has a zero cash balance. Suppose the company is considering a project with the same risk and the mix of debt and equity as the company. The project's cost of capital is, %. Instruction: Type ONLY your numerical answer in the unit of percentage. % sign is already there. Thus, so don't input the % sign. Round to the nearest two decimal places. E.g., if your cost of capital is 10.136%, then input 10.14.