Question
ANZ Corp plans to begin manufacturing smart parking meters to raise revenue for the city, despite having no experience with parking meter manufacturing. NPP Meters
ANZ Corp plans to begin manufacturing "smart" parking meters to raise revenue for the city, despite having no experience with parking meter manufacturing. NPP Meters is an all-equity firm that specializes in this business. NPP has an equity beta of 1.1. The risk free rate is 4% and the market risk premium is 6%. ANZ is all equity financed with a beta of 1.8. What is the cost of capital for this project?
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Airline Finance
Authors: Peter S. Morrell
4th Edition
1351959743, 978-1351959742
