Question
A company is considering a project in Chile. The beta for Chile is 0.40. The firm has an equity beta of 1.3 and a value
A company is considering a project in Chile. The beta for Chile is 0.40. The firm has an equity beta of 1.3 and a value of 800M and a debt of 250M and cash and marketable securities of 60M. If the risk-free rate is 2% and the GRP is 4%, what is the proper cost of capital for the project in Chile?
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Survey Of Economics, Principles, Applications, And Tools
Authors: Arthur O'Sullivan, Steven M. Sheffrin, Stephen J. Perez
5th Edition
0132556073, 978-0132556071
