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Backyard Tavern has a beta of 1.5 and a cost of equity of 13.2 percent. The risk-free rate of return is 4.2 percent. Backyard is
- Backyard Tavern has a beta of 1.5 and a cost of equity of 13.2 percent. The risk-free rate of return is 4.2 percent. Backyard is considering a project with a beta of 1.7 and a project life of eight years. An appropriate discount rate for the project is:
10.80 percent. 12.16 percent. 14.40 percent. 15.84 percent. 18.00 percent.
10.80 percent. |
12.16 percent. |
14.40 percent. |
15.84 percent. |
18.00 percent. |
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