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Using the information from the table, determine the weight on equity capital that should be used to calculate Xena's weighted-average cost of capital:Xena Corp.Total Assets $23,610Interest-Bearing Debt (market value) $11,070Average borrowing rate for debt 10.2%Common Equity: Book Value $6,150Market Value $25,830Marginal Income Tax Rate 37%Market Beta 1.73A. 24.0%B. 73.8%C. 70.0%D. 38.7%

Answer :

Using the capital asset pricing model is 15.2.

What is Market value?

The rate at which a property would trade in a competitor auction environment is known as its market value, or OMV. Market value is sometimes used interchangeably with market price, fair value, and fair market value, despite the fact that these terms have different meanings under different standards and can have differences in some circumstances.

Market capitalization is frequently employed to refer to market value, which is the price a property commands on the market. Market prices are dynamic by nature because they take into account a wide range of factors, such as the actual working environment, the overall health of the economy, and the dynamics of supply and demand.

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