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Running Shoes, Inc. has 2 million shares of stock outstanding. The stock currently sells for...

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Running Shoes, Inc. has 2 million shares of stock outstanding. The stock currently sells for $12.50 per share. The firm's debt is publicly traded and was recently quoted at 90% of face value matures in 10 years. It has a total face value of $10 million, and it has coupon rate of 8%. The risk free rate is 2% and the market risk premium is 8%. You've estimated that the firm has a beta of 1.20. The corporate tax rate is 40%. (refer to this for next three questions) What is the percentage of equity used by Running Shoes, Inc.? O 74.63% 73.53% 72.46% 68.97%

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