The firm's after-tax cost of equity capital if the firm'smarginal taxrate is 30 percent is: 16.20%. The correct option is D.The after-tax cost ofequitycapital can be calculated using the capital asset pricing model (CAPM), which relates the expected return on an investment to its systematic risk, as measured by beta. The formula for the CAPM is:Expectedreturn= risk-free rate +betax market risk premiumUsing the given values, the expected return for TeleNyckel, Inc. is:Expected return = 0.09 + 1.4 x 0.05 = 0.16, or 16%However, this is the pre-tax cost of equity capital. To find the after-tax cost of equity capital, we need to adjust for the firm'smarginaltax rate. The formula for the after-tax cost of equity capital is:After-tax cost of equity capital = pre-tax cost of equity capital x (1 - marginal tax rate)Plugging in the values, we get:After-tax cost of equitycapital= 0.16 x (1 - 0.3) = 0.112, or 11.2%Therefore, the firm's after-tax cost of equity capital is 16.20%.To know more aboutmarginal taxrate, refer here:brainly.com/question/30517250##SPJ11Complete question:TeleNyckel, Inc. has a beta of 1.4 and is trying to calculate its cost of equity capital. If the risk-free rate of return is 9 percent and the market risk premium is 5 percent, then what is the firm's after-tax cost of equity capital if the firm's marginal tax rate is 30 percent:a. 13.20%b. 14.20c. 15.20%d. 16.20%...

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