JBHiFi has a beta of 1.2 and a quoted credit default spread (CDS) of 4.1%. If the risk-free rate is 4.8%, and the equity risk premium is 5.1%, what is the cost of debt (in percentage) of JBHiFi?

Given: risk-free rate of return = 5 % market return = 10%, cost of equity = 15% value of beta (β) is:a.1.9b.1.8c.2.0d.2.2

Disregard your answers to the previous question. Now, assume that the cosmetic business has a valuation of $1,427 million and a beta of 0.7 with a perpetual growth rate of 4%, and the coal mining business has a valuation of $997 million and a beta of 1.2 with a perpetual growth rate of 1%. Suppose the risk-free rate is 2% and the market risk premium is 5%. Eastern Inc. is an all-equity firm. What is Eastern Inc’s current cost of capital? (Hint: first, need to calculate the current equity beta for Eastern Inc.) Note: Enter your final answers in percentage points in X.X format. e.g. if your answer is 10.654%, enter 10.7 Your answer is:

In computing for the cost of debt risk-free rate is added to _________.a.Income marginb.Equity marginc.Debt margind.Asset margin

A firm has an operating profit of $120 million, pays interest of $20 million, and pays corporate tax at 30%. All cash flows will grow by 3% per year in perpetuity. The firm’s equity beta is 1.0, the market risk premium is 6% and the risk-free rate is 5%. What is the value of equity assuming no reinvestment needs and no depreciation?A.$909 millionB.$875 millionC.$1,250 millionD.$636 million

The book value of Charcoal Corporation’s common equity is $10 million, and it has 1 million shares outstanding. The book value as well as market value of its risk-free debt is $10 million. The stock is currently trading at $20 per share. The beta of the company’s common stock is 1, and the market risk premium is 8%. If the risk-free Treasury bill rate is 4%, and the corporate tax rate is 0%, what is the company's (after-tax) weighted-average cost of capital?Group of answer choices8%None of the above10.5%9.5%9.33