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5. Tabasco Corporation is 100% financed with equity and intends to maintain this capital structure even though it is planning a major expansion. Tabasco's beta
5. Tabasco Corporation is 100% financed with equity and intends to maintain this capital structure even though it is planning a major expansion. Tabasco's beta is 0.7; the expected market return is 12% and the risk-free rate is 2%. If the expansion is expected to produce an internal rate of return of 8%, should Tabasco make the investment
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