Xena Corp. Total Assets $21,249 Interest-Bearing Debt (market value) $11,070 Average borrowing rate for debt 10.20% Common Equity:   Book Value $5,535 Market Value $23,247 Marginal Income Tax Rate 19% Market Beta 1.64             Using the information from the table, and assuming that the risk-free rate is 4.5% and the market risk premium is 6.2%, calculate Xena's weighted-average cost of capital:

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Xena Corp.
Total Assets $21,249
Interest-Bearing Debt (market value) $11,070
Average borrowing rate for debt 10.20%
Common Equity:  
Book Value $5,535
Market Value $23,247
Marginal Income Tax Rate 19%
Market Beta 1.64
   
   
   
Using the information from the table, and assuming that the risk-free rate is 4.5% and the market risk premium is 6.2%, calculate Xena's weighted-average cost of capital:
 
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