Ampex common stock has a beta of 1.4. If the risk free rate is 8%, the expected market return is 16 %, and Ampex has $20 million of 8% debt, with a yield to maturity of 12% and a margin tax rate of...

1 answer below »

Ampex common stock has a beta of 1.4. If the risk free rate is 8%, the expected market return is 16 %, and Ampex has $20 million of 8% debt, with a yield to maturity of 12% and a margin tax rate of 50% , What is the weighted average cost of capital for Ampex?

Answered Same DayDec 25, 2021

Answer To: Ampex common stock has a beta of 1.4. If the risk free rate is 8%, the expected market return is 16...

Robert answered on Dec 25 2021

130 Votes

Ampex common stock has a beta of 1.4. If the risk free rate is 8%, the expected market
return is 16 %, and Ampex has $20 million of 8% debt, with a yield to maturity of 12%
and a margin tax rate of 50%. D/E of the company is 2.0. What is the weighted average cost
of capital for Ampex?...

SOLUTION.PDF

Ampex common stock has a beta of 1.4. If the risk free rate is 8%, the expected market return is 16 %, and Ampex has $20 million of 8% debt, with a yield to maturity of 12% and a margin tax rate of...

Answer To: Ampex common stock has a beta of 1.4. If the risk free rate is 8%, the expected market return is 16...

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment