Textbook :Engineering Economy

Chapter 6 :Comparison and Selection among Alternatives

A Semiconductor an 12% 8.4% pa. what would be company has an equity beta of 1.8, a debt-to-equity rate of 005, avergo cost of a bi ' of 60% pa, and an effective income tax rate of The concert rate on long-term u.s. goverwest Treasury Billle is 2.2% pa. The maiket rick piemim/R,- ] pertoning to a diversified portflio of coponte comon stock is about Estimake this company's cost of opiny od its weighted aviogo cost of capital? 6 If the company were to make it Obt-to . epih parto fem 0.05.10.20, its of a spority and weighted average cost of capital suming the increased leverage does not afford the company's arruge ust of debt? Maswahlk . an electric utility company has on equity bata of 0.84, a debt-to- of 046, an average cost of debt of 43%. pa, and an eferve income tax rate of 30%. El What is the ulty company's cast of equity and weighted average cost of capital? -to-equity ratis