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QQQ Corp. needs you to compute the cost of capital of an investment opportunity. QQQ has...

QQQ Corp. needs you to compute the cost of capital of an investment opportunity. QQQ has compiled the following information from public companies that in are same industry as the investment opportunity. Assuming that the project will be financed with only equity, what is the project’s cost of capital? Enter your answer as a percent, do not include the % sign. Round your final answer to two decimals.

AAA

BBB

CCC

Equity Beta

1.5

1.6

1.0

D/E

0.35

0.40

0.20

Expected Market Return

12%

Risk-free Rate

5%

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jeff jeffy answered 6 months ago
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