Question 31 Save Answer 20 points Canyon Buff Corp. is in the cell phone industry. The management is planning to develop an electric car to be financed with only equity. ABC Enterprise is a firm that specializes in this electric car business. You are given the following financials: Canyon Buff Corp has a stock price of $20 per share with 30 million shares outstanding and 400 million and faces a marginal tax rate of 30% ABC Enterprise has a stock price of $15 per share with 30 million shares outstanding and $300 million in market value of debt with a debt beta of 0.10. ABC has an equity beta of 1.5 and also faces a marginal tax rate market value of debt with debt beta of 0.05. Canyon Buff has an equity beta of 1.3 30%. If the risk-free rate is 2%, and the expected market return is 7%, then your estimate of the cost of capital for the Canyon Buff's electric car project is Instruction: Type ONLY your numerical answer in the unit of percentage. % sign is already there. Round it to the one decimal place. E.g., if your answer is 10.13%, then input 10.1. Question 31 Save Answer 20 points Canyon Buff Corp. is in the cell phone industry. The management is planning to develop an electric car to be financed with only equity. ABC Enterprise is a firm that specializes in this electric car business. You are given the following financials: Canyon Buff Corp has a stock price of $20 per share with 30 million shares outstanding and 400 million and faces a marginal tax rate of 30% ABC Enterprise has a stock price of $15 per share with 30 million shares outstanding and $300 million in market value of debt with a debt beta of 0.10. ABC has an equity beta of 1.5 and also faces a marginal tax rate market value of debt with debt beta of 0.05. Canyon Buff has an equity beta of 1.3 30%. If the risk-free rate is 2%, and the expected market return is 7%, then your estimate of the cost of capital for the Canyon Buff's electric car project is Instruction: Type ONLY your numerical answer in the unit of percentage. % sign is already there. Round it to the one decimal place. E.g., if your answer is 10.13%, then input 10.1