write2lakenor7awj
write2lakenor7awj
07.12.2020 • 
Business

Sunny Co. is a 100% equity-financed company (no debt or preferred stock); hence, its WACC equals its cost of common equity. Sunny Co.’s retained earnings will be sufficient to fund its capital budget in the foreseeable future. The company has a beta of 1.80, the risk-free rate is 6.0%, and the market return is 7.8%.

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