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11 An all-equity firm is considering the projects shown below. The T-bill rate is 5 percent and the market risk premium is 9 percent. Project
11 An all-equity firm is considering the projects shown below. The T-bill rate is 5 percent and the market risk premium is 9 percent. Project A B C D Expected Return 10% 15 17 21 Project A Project B Project C Project D Calculate the project-specific benchmarks for each project. (Round your answers to 2 decimal places.) Beta 0.5 1.2 % % % % O Project A O Project B O Project C O Project D 1.4 1.6 If the firm uses its current WACC of 16 percent to evaluate these projects, which project, will be incorrectly rejected?
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