1 roadrunner bearing company is an all-equity firm ie it, Ask an Expert

Finance

1. Roadrunner Bearing Company is an all-equity firm (i.e. it has no debt financing) with a beta of 1.6. If the risk-free rate is 2.5% and the market risk premium is 10%, what is the cost of equity capital for Roadrunner Bearing Company?

2. Sylvester’s Plumbing is an all-equity firm with a beta of 1.3. If the risk-free rate is 2.75% and the expected market return is 13.5%, what is the cost of equity capital for Sylvester’s Plumbing?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92866439

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