The following data pertains to zolar corp a manufacturer of, Ask an Expert

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The following data pertains to Zolar Corp., a manufacturer of ball bearings (dollar amounts in millions). Total Assets $6,840 Interest-Bearing Debt $3,562 Average Pre-tax borrowing cost 11.5% Common Equity: Book Value $2,560 Market Value $12,850 Income Tax Rate 35% Market Equity Beta 1.24 Assuming that riskless rate is 4.2% and the market premium is 6.2%, calculate Zolar's cost of equity capital (i.e. the required rate of return on equity):

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92073799

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