The NuPress Valet Co. has a cost of equity of 12.7%, a pre-tax cost of debt of 5.1%, and a marginal tax rate of 35%. The common equity of NuPress currently carries a beta of 1.4, its D/E ratio is 0.85, and the expected return on the market is 10.1%.
What is the current risk-free rate? (Report answe in percentage terms and round to 2 decimal places. Do not round intermediate calculations).
The current Risk-Free... View the full answer