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a t-bill rate is 6% firm is 100% equity financed cost of capital equal to the expected return on the market which is 12% project
a t-bill rate is 6%
firm is 100% equity financed
cost of capital equal to the expected return on the market which is 12%
project Used books 0.85 Beta 12% expected return
project Chair 0.8 Beta 13% expected return
project drinks 1.8 Beta 14% expected return
project mce 1.6 Beta 16% expected return
a) if the projects are mutually exlusive , which one would be accept. (show work please)
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