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An all-equity firm is considering the projects shown below. The T-bill rate is 3 percent and the market risk premium is 9 percent. Project A
An all-equity firm is considering the projects shown below. The T-bill rate is 3 percent and the market risk premium is 9 percent. Project A B C D Expected Return 8% Project A Project B Project C Project D 24 18 22 Calculate the project-specific benchmarks for each project. (Round your answers to 2 decimal places.) Beta 0.5 1.6 1.8 2.0 8.00 % 24.00 % 18.00 % 22.00 % If the firm uses its current WACC of 15 percent to evaluate these projects, which project, will be incorrectly rejected?
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