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:

---

Definitions:

Psychopathy

A behavioral condition marked by continual disregard for others, diminished capacity for empathy and guilt, and features that are fearless, unrestrained, and narcissistic.

Antisocial Personality Disorder

Antisocial Personality Disorder is characterized by a long-term pattern of disregard for, or violation of, the rights of others.

Obsessive-Compulsive Personality Disorder

This condition features a consistent focus on maintaining order, striving for perfection, and exercising control, often sacrificing adaptability, receptiveness, and productivity in the process.

DSM-III-R

The third edition, revised, of the Diagnostic and Statistical Manual of Mental Disorders, a publication by the American Psychiatric Association outlining mental health diagnoses and criteria.