Question: Using the information from the table, and assuming that the risk-free rate is 4.5% and the market risk premium is 6.2%, calculate Day-Brite's cost of

Using the information from the table, and assuming that the risk-free rate is 4.5% and the market risk premium is 6.2%, calculate Day-Brite's cost of equity capital, using the capital asset pricing model: Day-Brite Interest-Bearing Debt $10,124 Average borrowing rate for debt 6.2% Common Equity: Book Value $18,120 Market Value $25,700 Marginal Income Tax Rate 32% Market Equity Beta 1.23

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