What is the beta of the firms assets

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The risk-free rate equals 7%, and the expected risk premium on the market portfolio equals 7%. A particular company has bonds outstanding that offer investors a yield to maturity of 6.5%.

The company also has common stock outstanding (with market value equal to its bonds outstanding) with an expected return of 15%.

What is the firm's WACC? You may assume there are no taxes. Round you answer to two decimal places.

What is the beta of the firm's assets? You may assume there are no taxes. Round you answer to two decimal places.

Reference no: EM132073746

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