Zonk Corp
the Following Data Pertains to Zonk Corp -Assuming That Riskless Rate Is 4

question 29

Multiple Choice

Zonk Corp.
The following data pertains to Zonk Corp., a manufacturer of ball bearings (dollar amounts in millions) :
$\begin{array}{l}\begin{array} { l } \text { Tatal assets } \\\text { Interest-bearing debt } \\\text { Average pre-tax borrowring } \\\text { Cammon equity: } \\\text { Badk value } \\\text { Market value } \\\text { Incame tax rate } \\\text { Market equity beta }\end{array}\begin{array} { r } \$ 7460\\\$ 3652\\10.5 \%\\\\\$2950 \\\$13685 \\35\% \\1.13\end{array}\end{array}$
-Assuming that riskless rate is 4.6% and the market premium is 7.3%,calculate Zonk's cost of equity capital:

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Definitions:

Extinction

In the context of behavioral psychology, it refers to the gradual reduction and eventual elimination of a conditioned response.

Not Effective

Lacks the ability to produce a desired or intended result.

Reasons

The explanations or justifications for an action or belief, often examined in the context of decision-making and problem-solving.

Omission Training

A learning process in which a response leads to the removal of an expected reward or positive outcome, thereby decreasing the likelihood of that response in the future.