Determine the companies cost of capital

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If the market price of common stock of a real estate company is 6 million and the value of its debt is 4 million with a beta of 1.5 and the risk premium on the market is 6 percent and the treasury bill rate is 4 percent and the debt is risk free and the real estate company pays no tax

Determine the required return on the real estate companies stock?

Determine the companies cost of capital

Determine the companies discount rate for and expansion of the present business

Assume the company wants to diversify into making vases. The beta of manufactures of vases is 1.2 what is the required return on the companies new venture

Reference no: EM1373118

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