What is the beta of stock

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1. The total book value of WTC’s equity is $11 million, and book value per share is $22. The stock has a market-to-book ratio of 1.5, and the cost of equity is 13%. The firm’s bonds have a face value of $7 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 8%, and the firm’s tax rate is 40%. What is the company’s WACC?

2. The common stock of Jensen Shipping has an expected return of 16.30%. The return on the market is 10.80% and the risk-free rate of return is 3.80%. What is the beta of this stock?

Reference no: EM132041212

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