Question
ABC is considering a new project. ABC's beta is 1.2 and the project's beta is 1.3. The market risk premium is 0.1 and the
ABC is considering a new project. ABC's beta is 1.2 and the project's beta is 1.3. The market risk premium is 0.1 and the T-bill rate is 0.04. What's the appropriate discount rate for this project? [round to 2 decimal places]
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
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