Ampex common stock has a beta of 14 if the risk free rate, Ask an Expert

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Ampex common stock has a beta of 1.4. If the risk free rate is 8 percent, the expected market return is 16 percent, and Ampex has $20 million of 8 percent debt with 10 years until maturity. It has a yield to maturity of 12 percent and a marginal tax rate of 50 %. D/E for the company is 2.0. What is the weighted average cost of capital for Ampex?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91593990

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