Question
An all-equity firm is considering the projects shown below. The T-bill rate is 4 percent and the market risk premium is 8 percent. PROJECT EXPECTED
An all-equity firm is considering the projects shown below. The T-bill rate is 4 percent and the market risk premium is 8 percent.
| PROJECT | EXPECTED RETURN | BETA | |||||
| A | 9 | % | 0.6 | ||||
| B | 21 | 1.3 | |||||
| C | 15 | 1.5 | |||||
| D | 19 | 1.7 | |||||
| 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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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
11th edition
978-1111530266
