18. The appropriate WACC of a firm is 6.43%. With risk-free rate of 4%, market return of 8% prevailing credit spread of 3% tax rate of 30% and Equity ratio of 30%, compute for the volatility of stocks...

18. The appropriate WACC of a firm is 6.43%. With risk-free rate of 4%, market return of 8% prevailing credit<br>spread of 3% tax rate of 30% and Equity ratio of 30%, compute for the volatility of stocks or beta.<br>a) 1.00%<br>b) 1.25%<br>c) 1.50%<br>d) 1.75%<br>19. The appropriate WACC of a firm is 6.43%. With risk-free rate of 4%, market return of 8% prevailing credit<br>spread of 3% tax rate of 30% and Equity ratio of 30%, compute for the after-tax cost of debt.<br>a) 4.90%<br>b) 5.00%<br>c) 7.00%<br>d) 10.00%<br>

Extracted text: 18. The appropriate WACC of a firm is 6.43%. With risk-free rate of 4%, market return of 8% prevailing credit spread of 3% tax rate of 30% and Equity ratio of 30%, compute for the volatility of stocks or beta. a) 1.00% b) 1.25% c) 1.50% d) 1.75% 19. The appropriate WACC of a firm is 6.43%. With risk-free rate of 4%, market return of 8% prevailing credit spread of 3% tax rate of 30% and Equity ratio of 30%, compute for the after-tax cost of debt. a) 4.90% b) 5.00% c) 7.00% d) 10.00%

Jun 08, 2022

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18. The appropriate WACC of a firm is 6.43%. With risk-free rate of 4%, market return of 8% prevailing credit spread of 3% tax rate of 30% and Equity ratio of 30%, compute for the volatility of stocks...

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