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An all-equity firm is considering the following projects: The T-bill rate is 5 percent, and the expected return on the market is 12 percent. a.
An all-equity firm is considering the following projects: The T-bill rate is 5 percent, and the expected return on the market is 12 percent. a. Which projects have a higher/lower expected return than the firm's 12 percent cost of cap b. Which projects should be accepted? c. Which projects will be incorrectly accepted/rejected or correctly accepted/rejected if the firm's overall cost of capital were used as a hurdle rate
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