Question
A firm has a beta of .45. The current market return is 13% while the current return on Treasury securities is 5.2%. The firm is
A firm has a beta of .45. The current market return is 13% while the current return on Treasury securities is 5.2%. The firm is considering a project that will cost $2 million and have expected cashflows of $300,000 per year for 11 years. The firm's cost of capital is 12%.
A. Calculate the risk-adjusted discount rate
B. Calculate the risk-adjusted NPV
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Liquidity Risk Management In Banks Economic And Regulatory Issues
Authors: Roberto Ruozi, Pierpaolo Ferrari
1st Edition
3642295800, 978-3642295805
