Question details

Ampex common stock has a beta of 1.4. If the risk-free rate is 8
$ 12.00

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 a yield to
maturity of 12 percent and a marginal tax rate of 50 percent, what is the weighted average
cost of capital for Ampex?

Available solutions