Question
Assume R f = 5.5 percent and R m = 9.5 percent and an increase in interest rates changes R f to 7.15 percent; also
Assume Rf = 5.5 percent and Rm = 9.5 percent and an increase in interest rates changes Rf to 7.15 percent; also assume that the market premium (Rm Rf) changes to 8.0 percent. Compute Kj for the following betas: (Round the final answers to 2 decimal places. Omit $ sign in your response.)
| a. | Kj when beta is 0.85 | % | |
| b. | Kj when beta is 1.55 | % | |
| c. | Kj when beta is 1.85 | % | |
NOTE: please provide all the calculation.
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Financial Management In Construction Contracting
Authors: Andrew Ross, Peter Williams
1st Edition
1405125063, 9781405125062
