An all-equity firm is considering the following projects: Project Beta IRR W 0.80 9.4% X .95 10.9% Y 1.15 13.0% Z 1.45 14.2% The firms
An all-equity firm is considering the following projects:
Project Beta IRR
W 0.80 9.4%
X .95 10.9%
Y 1.15 13.0%
Z 1.45 14.2%
The firms overall cost of capital is 11%. Assume T -bill rate is 3.5 percent, and the expected return on the market is 11 percent.
a. Which projects should be accepted? And Why?
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Authors: Stephen L. Nesbitt
2nd Edition
1119944392, 978-1119944393
