Solved: The us treasury bill is yielding 37 percent and the market, Business Management

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The us treasury bill is yielding 37 percent and the market

Parole Co. has 79,475 bonds outstanding that are selling at par value. The bonds yield 8 percent. The company also has 5.9 million shares of common stock outstanding. The stock has a beta of 1.37 and sells for $44.1 a share. The U.S. Treasury bill is yielding 3.7 percent and the market risk premium is 7 percent. Parole's tax rate is 37 percent. What is the firm's weighted average cost of capital?

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Business Management: The us treasury bill is yielding 37 percent and the market

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