What is the cost of equity from retained earnings

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1. Andre park corporation (apc) is planning to borrow $50 million from life insurance corporation (lic) as long-term debt. the yield to maturity for apc will be 12%. if apc is subject to a 40% tax rate, what is the after-tax component cost of debt.

2. You just opened an IRA, 25 years old, want to retire at 55 (n=30), and you want to have 1.5 million in the account. Assume you make an average of 9% return during that 30-year period, what does your monthly payment need to be?

3. Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: rRF = 4.10%; RPM = 5.25%; and b = 0.70. Based on the CAPM approach, what is the cost of equity from retained earnings?

Reference no: EM131935588

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