There are 5.2 million shares in the company on the French market, costing EUR 3.9 (per share). Getrich's debt amounts to EUR 45.0 million. The cost of debt is 6.4%. Getrich is taxed at a rate of 39.1%.
If the cost of equity is 15.9%, what is Getrich's weighted average cost of capital?

Answers

Answer 1

Getrich's weighted average cost of capital (WACC) is approximately 4.88154%.

Apologies for the confusion. Let's calculate the weighted average cost of capital (WACC) using the provided information:

1. Calculate the market value of equity (E):

E = Total number of shares * Price per share

  = 5.2 million shares * EUR 3.9 per share

  = EUR 20.28 million

2. Calculate the total market value of the company (V):

V = E + D

  = EUR 20.28 million + EUR 45.0 million

  = EUR 65.28 million

3. Calculate the weight of equity (E/V):

(E/V) = E / V

     = EUR 20.28 million / EUR 65.28 million

     ≈ 0.3106

4. Calculate the weight of debt (D/V):

(D/V) = D / V

     = EUR 45.0 million / EUR 65.28 million

     ≈ 0.6894

5. Calculate the after-tax cost of debt (Kd * (1 - Tc)):

After-tax cost of debt = Kd * (1 - Tc)

                     = 6.4% * (1 - 0.391)

                     ≈ 3.896%

6. Calculate WACC:

WACC = (E/V) * Ke + (D/V) * (After-tax cost of debt)

    = 0.3106 * 15.9% + 0.6894 * 3.896%

    ≈ 4.88154%

Therefore, Getrich's weighted average cost of capital (WACC) is approximately 4.88154%.

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Related Questions

An innovative business idea that no one has never had

Answers

An innovative business idea that no one has never had is Offering virtual assistance to other businesses.

What is innovative business idea ?

innovative business idea can be described as an idea in business that cn be developed so that it can be a way to earn a living by providing the services or the goods to the consumer.

It should be noted that this innovation can be the one that no one has ever done or the modification of the one that has been in exisitence, however providing the virtual assistance serves as one of the innovation in business that can ring profit.

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Complete question:

State An innovative business idea that no one has never had

After a basketball tournament, nine of the team members go out to The Cheesecake Factory to celebrate your winning with a victory dinner. You all order dinner plus some people get dessert. When the check comes the waiters says it all has to be one ticket. What is the best option for this payment scenario?

Answers

The best option for this payment scenario is through credit card, a person may initially pay the whole amount while the rest of the team members can transfer their amount of dinner to the person who made the payment at the restaurant through P2P.

What is Credit Card?

Credit card is the card that is issued by a bank and the card holder can avail the cash limit provided to him/her, without having an actual amount in the account. The credit card can be used for shopping and more and the bill for the credit card is generated at the end of the month and the payment by card holder is made, if the card holder delays the payment an interest is charged on the rate.

At the cheesecake Factory the payment can be made through a credit card and the other team members may transfer the amount to the person who makes the payment at restaurant with a credit card.

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measuring success within a program involves all of the following except: a. specifying outcomes. b. measuring program delivery. c. measuring program contexts.

Answers

Option d: Measuring success within a program involves all of the following except: advising officials on goals.

The increased use of programmes has made it necessary to comprehend what makes a successful programme. Based on 172 responses to a web-based survey of programme managers, a measurement construct for programme success was created. It consists of four dimensions: delivery capability, organisational capability, marketing capability, and innovative capability.

Canonical correlation analysis and analysis of variance (ANOVA) were used to examine the link between programme success and programme setting. The findings demonstrated that the measuring construct for programme success was consistent across various programme context types. Programme kinds and programme context features were used as two variables to operationalize programme context. It offers a mechanism for additional research into programme assessment. The success school of project management is the first source cited in the paper's literature evaluation since it offers a theoretical framework for the analysis.

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Complete question:

Measuring success within a program involves all of the following except:

specifying outcomes.

measuring program delivery.

measuring program contexts.

advising officials on goals.

what is unique about staffing practices at the online shoe company zappos?

Answers

Zappos' unique staffing practices prioritize cultural fit over qualifications, emphasizing alignment with core values and offering a comprehensive training program called "The Offer."

Determine the Zappos?

Zappos is known for its distinctive approach to staffing, which focuses on cultural fit rather than solely on qualifications and experience. The company believes that hiring individuals who align with its core values and culture leads to a more engaged and productive workforce.

To ensure cultural compatibility, Zappos implements a rigorous hiring process that includes multiple interviews and a unique training program called "The Offer." During "The Offer," new hires are immersed in the company's culture for several weeks, with the option to leave the company at any time, receiving a bonus if they choose to do so.

This process aims to identify individuals who genuinely embrace the company's values and are committed to long-term engagement. By prioritizing cultural fit, Zappos fosters a work environment where employees are more likely to thrive and contribute to the company's success.

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- Per=percent
- Its capital structure consists of 40 % debt and 60 % equity.
- The company has 20-year bonds with a 9 per annual coupon that are trading at par.
- The company’s tax rate is 40 per.
- The risk-free rate is 5.5 per.
- The market risk premium is 5 per.
- The stock’s beta is 1.4.
What is the company’s WACC?

Answers

The company's WACC is 11.1%.

To calculate the Weighted Average Cost of Capital (WACC), we need to consider the cost of both debt and equity.

Given information:

Debt weight (D/E ratio): 40%

Equity weight: 60%

Coupon rate on the bonds: 9%

Tax rate: 40%

Risk-free rate: 5.5%

Market risk premium: 5%

Stock's beta: 1.4

First, let's calculate the cost of debt (Kd):

Since the bonds are trading at par, the coupon rate is equal to the yield to maturity (YTM). Therefore, the cost of debt is 9%.

Next, let's calculate the cost of equity (Ke):

Using the Capital Asset Pricing Model (CAPM), we can calculate the cost of equity.

Ke = Risk-free rate + (Beta x Market risk premium)

Ke = 5.5% + (1.4 x 5%)

Ke = 5.5% + 7%

Ke = 12.5%

Now, we can calculate the WACC using the weights of debt and equity:

WACC = (Weight of Debt x Cost of Debt) + (Weight of Equity x Cost of Equity)

WACC = (0.4 x 9%) + (0.6 x 12.5%)

WACC = 3.6% + 7.5%

WACC = 11.1%

Therefore, the company's WACC is 11.1%.

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Find a news headline that refers to the business cycle. What phase of the business cycle does your headline reference? Explain.

Answers

Answer:

The business cycle typically consists of four phases:

Expansion: This phase is characterized by increasing economic activity, rising GDP, low unemployment rates, high consumer confidence, and increased business investments.

Peak: The peak represents the highest point of economic expansion before the cycle starts to slow down.

Recession: This phase marks a slowdown in economic activity. It is characterized by declining GDP, rising unemployment, reduced consumer spending, and decreased business investments.

Trough: The trough represents the lowest point of the business cycle. It is the phase where the economy reaches its bottom before starting to recover.

first come first serve

Answers

Answer:

hiiii

thanks for the free points

Answer:

hi hello

Explanation:

:) :) :):) :) :) :)

Jesse got a job at a fitness center. He thought his first paycheck would be $200 for working 20 hours at $10 an hour. Instead, the paycheck was for $180. Which was most likely taken from his check?

A.) taxes

B.) interest

C.) profit

D.) dividends

Answers

Answer:

Taxes

Explanation:

The answer to the question is taxes.

Answer:

Hey there! It sounds like Jesse got a job at a fitness center and was expecting his first paycheck to be for $200, but it ended up being for $180 instead. That's a bummer!

Paychecks often have various deductions taken out, like taxes, insurance premiums, and retirement contributions. It's possible that some or all of these deductions were taken out of Jesse's paycheck, which is why it was for less than he expected.

Taxes are a common deduction from paychecks, so it's likely that some taxes were taken out. But don't worry, this is just part of the process of getting paid and is completely normal.

It's probably not interest, profit, or dividends, since those things are usually associated with investments or financial products, not employment.

What is the spending multiplier if the marginal propensity to consume is 0.60?
a) 1.67
b) 4.0
c) 6.67 .
d) 2.5

Answers

The spending multiplier if the marginal propensity to consume is 0.60 is c) 6.67.

The spending multiplier represents the change in overall spending resulting from a change in autonomous spending (initial injection) in an economy. It is calculated as the reciprocal of the marginal propensity to save (MPS) or the marginal propensity to consume (MPC).

In this case, the question provides the marginal propensity to consume (MPC) as 0.60. To calculate the spending multiplier, we use the formula:

Spending Multiplier = 1 / (1 - MPC)

Substituting the given MPC value:

Spending Multiplier = 1 / (1 - 0.60)

                 = 1 / 0.40

                 = 2.5

Therefore, the spending multiplier is 2.5. However, none of the options provided match this value. The closest option is c) 6.67, which is the reciprocal of 0.15 (1 - 0.60), giving an approximate value of 6.67.

It seems there may be an error or discrepancy in the options provided, as the calculated value does not match any of them precisely.

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according to contractarianism, what motivates the contractors to select the rules they do? group of answer choices

Answers

According to contractarianism, rational self-interest motivates the contractors to select the rules they do.

What exactly does contractarianism mean?

According to contractarianism's moral theory, moral standards derive their normative power from the concept of a contract or mutual agreement. Contractarians are dubious of the concept that morality or political power may be rooted in either divine will or some perfectionist ideal of what it is to be human.

How does the veil advance contractarianism?

We can put theories of fairness to the test using the Veil of Ignorance, a part of social contract theory. Nobody recognizes themselves behind the Veil of Ignorance. They don't have any indications of their social standing, perks, shortcomings, or even personalities.

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Consider a circle whose equation is x2 + y2 – 2x – 8 = 0. Which statements are true? Select three options. The radius of the circle is 3 units. The center of the circle lies on the x-axis. The center of the circle lies on the y-axis. The standard form of the equation is (x – 1)² + y² = 3. The radius of this circle is the same as the radius of the circle whose equation is x² + y² = 9.

Answers

According to the question of equation, the first statement is true. The second statement is false. The third statement is false. The fourth statement is true. The fifth statement is false.

What is equation?

Equation is a mathematical statement that expresses the equality of two expressions by using symbols. It typically consists of an equal sign and two expressions or terms that are linked by the equal sign. These expressions or terms can contain numbers, variables, constants, and mathematical operations such as addition, subtraction, multiplication, and division. Equations are used to describe physical phenomena and solve problems.

The radius of the circle is 3 units because the equation can be rearranged to (x – 1)² + y² = 3, which is the standard form of a circle. The center of the circle lies at the point (1, 0) and does not lie on the x-axis. The center of the circle lies at the point (1, 0) and does not lie on the y-axis. The standard form of the equation is (x – 1)² + y² = 3. The radius of this circle is 3 units, while the radius of the circle whose equation is x² + y² = 9 is 3√2 units, which is not the same as 3.

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as an office worker you are supposed to explain in your new assistant the following things. explain in your own words
A}minutes
B} memorandum
C} agenda
D} telegrams
E} pictograms

Answers

Answer:

c- a list of items to be discussed at a formal meeting.

a-  a period of time equal to sixty seconds or a sixtieth of an hour.

b-a written message in business or diplomacy

d-a message sent by telegraph and then delivered in written or printed form.

e-a pictorial symbol for a word or phrase. Pictographs were used as the earliest known form of writing, examples having been discovered in Egypt and Mesopotamia from before 3000 BC

Explanation:

A company introduces a new technology product to the market. it sets the product’s price at the highest price it thinks customers will pay. Which type of pricing strategy is the company using?

Answers

A company introduces a new technology product to the market. it sets the product’s price at the highest price it thinks customers will pay. the type of pricing strategy is the company using is

skim pricing

What is pricing strategy?


Price is the value assigned to a good or service and is determined by a complicated series of calculations, research, and risk-taking skills.

A pricing strategy considers factors such as market conditions, consumer willingness to pay, competition activity, trade margins, and input costs, among others. Target audiences include the specified clients and rival businesses.

Depending on the industry and business model at hand, many pricing models are often utilized, including value-based, competitor-based, cost-plus, and dynamic pricing.

Skimming is a pricing technique that involves setting initial product prices high and then lowering them as competitors enter the market. Penetration pricing is the reverse of skim pricing.

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Calculate the FV for the following 3 scenarios. Investment scenario #1:
You invest $1,000 (PV) for 10 years (n) at an interest rate of 5% (r). What is the amount you would receive at
the end of 10 years (FV)?
Investment scenario #2:
You invest $5,000 (PV) for 20 years (n) at an interest rate of 8% (r). What is the amount you would receive at
the end of 20 years (FV)?
Investment scenario #3:
You invest $10,000 (PV) for 30 years (n) at an interest rate of 12% (r). What is the amount you would receive
at the end of 30 years (FV)?
PLEASE ANSWER WITH WORK SHOWN :)

Answers

Answer:

?

Explanation:

Answer:

$2191.12

Explanation:

We are asked to find the value of a bond after 10 years, if you invest $1000 in a savings bond that pays 4% interest, compounded semi-annually.

FV=C_0\times (1+r)^n, where,

C_0=\text{Initial amount},

r = Rate of return in decimal form.

n = Number of periods.

Since interest is compounded semi-annually, so 'n' will be 2 times 10 that is 20.

4\%=\frac{4}{100}=0.04

FV=\$1,000\times (1+0.04)^{20}

FV=\$1,000\times (1.04)^{20}

FV=\$1,000\times 2.1911231430334194

FV=\$2191.1231430334194

FV\approx \$2191.12

Therefore, the bond would be $2191.12 worth in 10 years.

When the body senses warmer temperatures, what happens to the blood vessels?

Answers

Answer:

When we get too hot, sweat glands in the skin release more sweat. The sweat evaporates, transferring heat energy from the skin to the environment. 

Answer:

Part1:

B.) They become smaller.

Part 2:

A.) they become larger

Explanation:

edge 2021

Explain what a trade war is

Answers

Answer: A trade war happens when one country retaliates against another by raising import tariffs or placing other restrictions on the other country's imports.

Explanation:

, the store manager, recently had to fire Susan, an employee who graduated from Hogwarts University. She felt that Susan was not well trained at her school. So when Severo, also a graduate from Hogwarts, applied for Susan's old position, Ivy did not want to consider hiring him, feeling Severo also probably did not receive the proper training. Ivy was affected by ________ bias.

Answers

Ivy, the store manager, was affected by the Halo effect bias when considering hiring Severo, another Hogwarts University graduate, for Susan's old position.

The Halo effect bias refers to the tendency to generalize a positive or negative impression of someone based on a single trait or characteristic. In this case, Ivy's negative perception of Susan's performance influenced her judgment of Severo, assuming that he would likely have similar deficiencies in training as well.The bias occurs because Ivy is relying on a stereotype or generalization based on her experience with one individual, Susan, to form an opinion about another individual, Severo.

However, it is important to recognize that individuals are unique and should not be judged solely based on their association with a particular school or institution. Ivy's decision not to consider hiring Severo solely due to his association with Hogwarts University demonstrates the Halo effect bias in action, potentially overlooking a qualified candidate based on a single negative impression.

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Evaluate the benefits and limitations of the change to the operations process being planned by the managing director.

Answers

Answer:

'Change in Operations process, by Managing Director'  - Benefits & Risks

Explanation:

'Change in Operations process, by Managing Director' - Benefits

Operations' modernisation, brings new opportunities Operations' critical appraisal & improvisation New operations create Initiative for new innovative ideas

'Change in Operations process, by Managing Director' - Limitations

Motivating, training employees for new changed operations might be a challengeEmployees might resist the changes New operations might have other feasibility risk factors.

2. What is the relationship between the timing of your goals and the type

of good or service that you

want?

Answers

Answer:

There will be a positive relationship between the timing of goals and wants for commodities.

Explanation:

The timing of the goal is the most important thing when it is seen with the commodity that a person wants. For instance, if a person wants their own a house to live with their partner then the timing would be to set a goal to buy the house before marriage because after having marriage and kids, the goal to buy the house may be delayed. Thus, to achieve success in a goal a person must be in the constraint of time. Moreover, if a person has small wants then he should fix the time to get their goal in a short time period or vice versa. So there will be a positive relationship between the timing of goals and wants for commodities. Additionally, the goals of students will be different from the person who is married and have kids.

How much less would Maria have to spend to have $100 per month available for saving?

Answers

The savings instrument that could help Maria reach her goal are a regular saving accounts and a money market account with a $100 minimum deposit. The correct options are b and d.

What is money market account?

The term money market account refers to an interest-bearing account at a bank or credit union. Sometimes referred to as money market deposit accounts, money market accounts have some features that are not found in other types of accounts. Most money market accounts pay a higher interest rate than regular savings accounts and often include check-writing and debit card privileges. They may also come with restrictions that make them less flexible than a regular checking account.

They are important for calculating tangible net worth.

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Maria deposits her paycheck each week in a checking account. She plans to buy a car in the next year, so she decides to start saving $100 each month to pay for it. She does not want to have to remember to make that deposit each month. What savings instruments could help Maria reach her goal? Check all that apply. Series I savings bon Series EE savings bonds a regular savings account a 24-month certificate of deposit a money market account with a $100 minimum deposit

Which of the following is a true statement regarding operating costs:
They are fixed expenses.
They are not directly related to production.
They occur once or twice a year.
Only some businesses have them.

Answers

Answer:

They are not directly related to production.

Explanation:

Operating expenses are the costs incurred in running the affairs of a business on a day-to-day basis. They refer to the expenses associated with the maintenance and administration of a business. Operating expenses are also operational costs and include rent, machinery, payroll services, utilities, uniforms, and office supplies. operating cost also covers overhead expenses as well as the cost of goods sold

These are some of my ideas, Hope u like

These are some of my ideas, Hope u like

Answers

that’s pretty nice!!

Answer:

yo i love it

Explanation:

Why is it important for people to maintain a good credit history?
A. So that it's easier to list the expenses on their personal budget
B. So that the IRS won't investigate them for tax fraud
C. So that they know all of the fees associated with their credit cards
D. So that they have an easier time getting loans and credit cards

Answers

Answer:

D. So that they have an easier time getting loans and credit cards

Explanation:

A credit score is a three-digit numerical that communicates reliability in debt repayments. Credit scores range between 300 to 850. Lenders seek to find the credit score for a borrower before advancing credit facilities to them. A higher credit score indicates a borrower is less likely to default on a loan.

Maintaining a high credit score enables one to obtain credit with relatively easy and at lower interest rates. Lenders feel comfortable extending credit to a customer with a high credit score. They consider them a low-risk borrower.

NEED HELP AS SOON AS POSSIBLE

NEED HELP AS SOON AS POSSIBLE

Answers

Answer:it is 10,000

Explanation:

Answer:

Q1: Total assets= 25,200

Q2: Total liabilities = 16,500

Explanation:

Q1: Add all your assets to get total assets

Q2: Add all your liabilities to get total liabilities

Q3: Your net worth, quite simply, is the dollar amount of your assets minus all your debts. You can calculate your net worth by subtracting your liabilities (debts) from your assets. If your assets exceed your liabilities, you will have a positive net worth. Conversely, if your liabilities are greater than your assets, you will have a negative net worth.

25, 200-16,500=+8700

What is the hazard? Chris works for a city public works department. One hot afternoon the temperature outside reached 92 degrees. While Chris was shoveling dirt in a vacant lot, he started to feel dizzy and disoriented. He fainted due to the heat.

Answers

Answer: dehydration

Explanation:

Answer:

dehydration and heat exhaustion.

Explanation:

I hope this helps! :)

1. Job that helps you earn money to pay for college


1. Job that helps you earn money to pay for college

Answers

Answer:

work - study

Explanation:

Answer:

work ..... study

Explanation:

The difference between small business and entrepreneurship has nearly nothing to do with size and nearly everything to do with
O Capital
O competition
O number of employees
O characteristics

Answers

Answer: (1) Entrepreneurs are always looking for ways to make money while small business have the same goal but company owners also focus on maintaining their business income to pay for operating expenses.

(2) Entrepreneurs are more likely to take on debt than small business owners and typically have much higher risk tolerance. They are comfortable assuming larger uncertainties to pursue new ideas and opportunities

(3) Entrepreneurs are risk-takers while store owners are more conservative

(4)  Entrepreneurs are future-oriented, while small business owners typically focus on the present.  

Explanation:

Since there are advantages and disadvantages for all types of incentive pay, organizations offset the disadvantages by ______.

Answers

What organization do to offset the disadvantages by increasing the pay or awarding them for a job well done

Incentive pay by organizations

Incentives are bonuses given to employees based on their performance on the job.

Incentives are used to encourage production-line workers to increase their production output,

These incentives are known to  be both advantageous and disadvantageous, what organizations do to offset the disadvantages by increasing the pay or awarding them for a job welldone

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In today's economy, personal selling has evolved to take on elements of customer service and marketing research. Why is this the case?
a. It is less expensive to deliver service and conduct research with the sales staff.
b. It is more time efficient because salespeople are already interacting with customers.
c. Personal selling focuses more on developing customer relationships than on generating transactions.
d. It allows salespeople to earn higher commissions for doing more work.
e. None of the above is correct.
straight salary

Answers

The "Personal-Selling" take on elements of customer service and marketing research is because (c) "Personal-Selling" focuses more on developing customer relationships than on generating transactions.

The "Personal-Selling" is defined as a sales-strategy that involves face-to-face interaction between a salesperson and a potential customer.

In the past, personal selling was often seen as a transactional-process where the primary goal was to close a sale.

In today's economy, personal selling has evolved to take on a more relationship-oriented approach, where the goal is to build long-term relationships with customers.

To build these relationships, salespeople must engage in activities that go beyond simply closing a sale. They must also provide customer service and support, answer questions and concerns, and conduct marketing research to understand customers' needs and preferences.

Therefore, the correct option is (c).

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In today's economy, personal selling has evolved to take on elements of customer service and marketing research primarily because of option c. Personal selling focuses more on developing customer relationships than on generating transactions.

Marketing research is the process of collecting, analyzing, and interpreting data related to consumer preferences, buying habits, and market trends. It is a critical component of marketing strategy and helps businesses make informed decisions about product development, pricing, promotion, and distribution. Marketing research methods may include surveys, focus groups, observation, and data analysis of sales figures, customer feedback, and online activity. The insights gained from marketing research can help businesses identify new opportunities, optimize marketing campaigns, and better understand their target audience. Effective marketing research can provide businesses with a competitive advantage by helping them make data-driven decisions that lead to more successful outcomes.

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Nina has just started a new job and has already been late several times. She
gets everything done within the day, but she just can't seem to be on time.
What should Nina address?
A. Honesty
B. Respect for diversity
C. Integrity
D. Punctuality

Answers

Nina needs to address her punctuality

Answer:

D

Explanation:

A p e x

Other Questions
Which of the following terms refers to a passage or channel and is derived from the Latin meaning passage? -Concha - Naris - Turbinate - Sinus - Meatus. using the definition of compactness (i.e. you should not use the heine-borel theorem), show that the finite union of compact sets is compact. Company A wants to calculate its WACC. It has just issued a 10-year, 6% coupon, non-callable bond at par value. A's current stock price is $40 and A just paid s $0.5 per share dividend. A's dividend payment is expected to grow at a constant rate of 7% a year. A wants to keep a debt-to-capital ratio of 80%. Tax rate is 35%. If A does a not have preferred stock and floatation costs, what is its WACC (please report WACC as a decimal number with four decimal places, such as 0.0562)? A bank has a 10 percent reserve requirement, $36,000 in loans, and has loaned out all it can given the reserve requirement. a. It has $3,600 in deposits. b. It has $32,400 in deposits. c. It has $39,600 in deposits.d. It has $40,000 in deposits. Selecting a topic, analyzing the audience, writing a thesis statement, and determining the purpose of the speech are all involved in the process of constructing a speech. Put these in correct chronological order:analyze the audience. select a topic. determine the purpose of the speech. write a thesis statement. please answer all requirements and follow any rounding instructionsor whole number instructionsLife Cycle Metal Recycling and Salvage receives the opportunity to salvage scrap metal and other materials from an old industrial site. The current owners of the site will sign over the site to Life C What happened as a result of Spain's early exploration of the New World? A nurse is teaching the parents of a school-age child who has asthma about a rescue medication to use during an acute asthma attack. what typeof medications should the nurse include in the teaching? find the conditional probability that x is greater than 2 6 given that x is less than or equal to 1 2 . Question is in photo answer a through d please You have been called in to value a dental practice by an old friend and have been provided with the following information: The practice generated pre-tax income of $ 550,000 last year for the dentist, after meeting all office expenses. The income is expected to grow at 2% in perpetuity, with no reinvestment needed. The tax rate is 40%. The dentist currently spends about 20 hours a week doing the accounting and administrative work. You estimate that hiring an external accounting service will cost you $25,000 annually. As an alternative to private practice, the dentist could work at a dental hospital nearby at an annual salary of $ 150,000. (Neither was considered when estimating the income above) The office is run out of a building owned by the dentist. While no charge was assessed for the building in computing the income, you estimate that renting the space would have cost you $75,000 a year. The unlevered beta of publicly traded medical service companies is 0.80 but only one-third of the risk in these companies is market risk. The dental practice has no debt. (You can use a riskfree rate of 4.25% and a risk premium of 4%). a. Estimate the cost of capital that you would use in valuing this practice. (1 point) b. Estimate the value of the practice for sale in a private transaction to another dentist who is not diversified.