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blour 1. Suppose the stock of the Chand Scompany, 2 publisher of college text books has a beta of 1.3. the firm is 100 percent
blour 1. Suppose the stock of the Chand Scompany, 2 publisher of college text books has a beta of 1.3. the firm is 100 percent equity financed, that is it has no debt. Chand is considering a number of capital budgeting projects that will double its size. Because these new projects are similar to the firm's existing ones, the average beta en the new projects is equal to the company's existing beta. The risk free rate is 5%. What is the appropriate discount rate for these new projects assuming a market risk premium of 8.4%? Scanned with CamScanner
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