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3 Problem 13-6 WACC (L01) 9.09 points Nodebt Inc. is a firm with all-equity financing. Its equity beta is 0.80. The Treasury bill rate is
3 Problem 13-6 WACC (L01) 9.09 points Nodebt Inc. is a firm with all-equity financing. Its equity beta is 0.80. The Treasury bill rate is 2%, and the market risk premium is expected to be 9%. a. What is Nodebt's asset beta? (Round your answer to 2 decimal places.) eBook Asset beta Print References b. What is Nodebt's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) WACC % Chapter 13 Assignment i Saved 4 Problem 13-10 Company versus Project Discount Rates (LO2) 909 points Geothermal's WACC is 10.6%. Executive Fruit's WACC is 11.5%. Now Executive Fruit is considering an investment in geothermal power production. a. Should it discount project cash flows at 11.5%? ebook Yes O No Print b. What would be a better discount rate for this investment? (Enter your answer as a percent rounded to 1 decimal place.) n References Better discount rate %
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