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5. Computer Corp currently has assets of $30 million and a bet market risk premium is 8 percent. Computer Corp would If the expansion is

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5. Computer Corp currently has assets of $30 million and a bet market risk premium is 8 percent. Computer Corp would If the expansion is undertaken, Computer Corp would the new division will have an estimated beta of 1.9. on and a beta of 1.4. The risk free rate is 7 percent and the Percent. Computer Corp would like to expand into a risky home computer market. maken, Computer Corp would create a new division with $10 million in assets and maris Computer Corp's current (without the expansion) required rate of return? ) y the expansion is undertake what would be the firm's new beta, new overall required rate of return? (8)

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