Question: Question 4 1 pts You've recently started a job working for Netflix. One of your first tasks is to find the cost of equity

Question 4 1 pts You've recently started a job working for Netflix.

Question 4 1 pts You've recently started a job working for Netflix. One of your first tasks is to find the cost of equity using the CAPM. Based on recent market data, you estimate that Netflix's beta is 1.34. The expected return on the market is 8%, and the current risk-free rate is 3%. What is Netflix's cost of equity (according to CAPM)? Question 5 1 pts Debt investors for Honeywell demand a return of 3.5%. Honeywell's corporate tax rate is 28%, and the average personal tax rate is 24%. What is Honeywell's effective cost of debt? Question 6 1 pts Right now Blue and White Taxis is an all equity financed corporation worth 69 million dollars. The company's CFO wants to change the company's capital structure so the company is 72% debt financed. Assuming there is no tax shield of debt, how much will Blue and White Taxis' equity be worth after implementing this new capital structure? (Enter your answer in millions. i.e. 5.5 million, not 5,500,000)

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