The next questions refer to the following.
A publicly traded firm has 4 million shares of stock outstanding, with a current share price of $50. The value of its plant and equipment is $250 million. Its profit annually is $50 million.
-The average cost of capital is approximately
A) 5%
B) 10%
C) 15%
D) 20%
E) 25%

Question

Quizplus · Accepted Answer

The Answer of The next questions refer to the following.
A publicly traded firm has 4 million shares of stock outstanding, with a current share price of $50. The value of its plant and equipment is $250 million. Its profit annually is $50 million.
-The average cost of capital is approximately
A) 5%
B) 10%
C) 15%
D) 20%
E) 25%

The Next Questions Refer to the Following