Fournier industries a publicly traded waste disposal


Fournier Industries, a publicly traded waste disposal Company, is highly leveraged firm with 70% debt, 0% preferred stock, and 30% common equity financing. Currently the risk-free rate is about 4.5%, and the return on the S&P 500 (the market proxy) is 12.7%. The firm’s beta is currently estimated to be 1.65.

a. What is Fournier’s current cost equity?

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Financial Management: Fournier industries a publicly traded waste disposal
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