ABC Corp. is a firm with all-equity financing. Its equity beta is .80. The Treasury bill rate is 4 percent, and the market risk premium is expected to be 10 percent. What is ABC's asset equity beta? What is its weighted average cost of capital? The firm is exempt from paying taxes.© BrainMass Inc. brainmass.com June 3, 2020, 10:27 pm ad1c9bdddf
The asset equity beta of an all equity firm is same as the equity beta.
Beta (equity) = Beta ...
The asset equity beta and average cost of capital is calculated for ABC Corp.