A firm has 10,000,000shares of common stock outstanding, each with a market price of $15.00 per share.It has 80,000 bonds outstanding, each selling for $1020.The bonds mature in 15 years, have a coupon rate of 9%, and pay coupons semi-annually.The firm's equity has a beta of 1.9, and the expected market return is 10%.The tax rate is 30% and the WACC is 12%.Calculate the risk free rate.

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The Answer of A firm has 10,000,000shares of common stock outstanding, each with a market price of $15.00 per share.It has 80,000 bonds outstanding, each selling for $1020.The bonds mature in 15 years, have a coupon rate of 9%, and pay coupons semi-annually.The firm's equity has a beta of 1.9, and the expected market return is 10%.The tax rate is 30% and the WACC is 12%.Calculate the risk free rate.

A Firm Has 10,000,000shares of Common Stock Outstanding, Each with a Market