A. If a company has a beta of 1.52 and is considering a high risk project outside its normal course or business with a beta
A. If a company has a beta of 1.52 and is considering a high risk project outside its normal course or business with a beta of 2.4, what beta should the company use? The 1.52 or the 2.4? Why?
B. A company is operating in three areas of the economy (sectors or industries) and the divisional betas are presented below: Beta Value Division A 2.75 $520,000 Division B .35 $830,000 What is the companys beta?
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Authors: William Brueggeman, Jeffrey Fisher
17th Edition
1264072945, 978-1264072941
