\(\displaystyle\sqrt{{\left({x}+{8}\right)}}+\sqrt{{\left({x}+{15}\right)}}=\sqrt{{\left({9}{x}+{40}\right)}}\)
a) The cost of capital before tax. Given: A firm has 40000 shares whose current price is $80.75. Those stockholders expect a return of \(\displaystyle{15}\%\). The firm has a 2 year loan of $900000 at \(\displaystyle{6.4}\%\). It has issued 12,500 bonds with a face value of 1000. Time period for maturity is 15 years. The semiannual interest rate is \(\displaystyle{6}\%\). The current price is $1090. b) The cost of capital after tax.
