Question
An all-equity firm is considering the projects shown below. The T-bill rate is 6 percent and the market risk premium is 7 percent. PROJECT EXPECTED
| An all-equity firm is considering the projects shown below. The T-bill rate is 6 percent and the market risk premium is 7 percent. |
| PROJECT | EXPECTED RETURN | BETA | |||||
| A | 11 | % | 0.7 | ||||
| B | 22 | 1.4 | |||||
| C | 16 | 1.6 | |||||
| D | 20 | 1.8 | |||||
| Calculate the project-specific benchmarks for each project. (Round your answers to 2 decimal places.) |
| Project A | % |
| Project B | % |
| Project C | % |
| Project D | % |
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Short Term Financial Management
Authors: Terry S. Maness, John T. Zietlow
2nd Edition
0030315131, 978-0030315138
