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An all-equity firm is considering the projects shown below. The T-bill rate is 4 percent and the market risk premium is 6 percent. Project
An all-equity firm is considering the projects shown below. The T-bill rate is 4 percent and the market risk premium is 6 percent. Project Expected Return Beta A 9% 0.8 B C D 19 1.5 13 1.7 17 1.9 Calculate the project-specific benchmarks for each project. (Round your answers to 2 decimal places.) Project A Project B % % Project C % Project D % If the firm uses its current WACC of 12 percent to evaluate these projects, which project, will be incorrectly rejected? O Project A O Project B O Project C O Project D
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