asked 35.3k views
16 votes
We have the following information. We have two companies we are considering. They are Anthony and Ben and their betas are 1 and 1.4, respectively. The T bond rate is .02 and the rate of return in the market is .12. The debt rates of the two firms are .30 and .60 in order we have mentioned them. Finally, their tax rates are .25 and .40, respectively. Compute their cost of equity. If they each pay $4 and their growth rate is .01, what are their prices

asked
User Floh
by
7.6k points

1 Answer

4 votes

Answer:

Goof

Step-by-step explanation:

answered
User Kevin Joymungol
by
8.3k points
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