The Campbell Company is a manufacture.
Their capital structure consists of
- Long-Term debt, with an incremental borrowing rate of 8%
- Capital stock, with the following information:
Risk free rate 6%
Market rate of return 13%
Beta 1.2
Long-Term debt 40% of total financing
Capital Stock 60% of total financing
with steps how you got the answers, because I do have a similar problem that I need to do, just the numbers are different.