Hartford equity cost of? capital

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Hartford Mining has 90 million shares that are currently trading for $2 per share and $110 million worth of debt. The debt is risk free and has an interest rate of 8%?, and the expected return of Hartford stock is 12%. Suppose a mining strike causes the price of Hartford stock to fall 28% to $1.44 per share. The value of the? risk-free debt is unchanged. Assuming there are no taxes and the risk? (unlevered beta) of? Hartford's assets is? unchanged, what happens to? Hartford's equity cost of? capital?

Reference no: EM131473577

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