Question
An all-equity firm is considering the projects shown as follows. The T-bill rate is 2 percentand the market risk premium is 6 percent. If the
An all-equity firm is considering the projects shown as follows. The T-bill rate is 2 percentand the market risk premium is 6 percent. If the firm's WACC is 12 percent, which of thefour projects should be accepted? Why?
Project Expected return Beta
A 9% 0.7
B 11% 1.1
C 13% 1.5
D 15% 1.9
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
