Question
fin 305 ch 11 q 17 An all-equity firm is considering the projects shown below. The T-bill rate is 6 percent and the market risk
fin 305 ch 11 q 17
An all-equity firm is considering the projects shown below. The T-bill rate is 6 percent and the market risk premium is 7 percent.
| PROJECT | EXPECTED RETURN | BETA | |||||
| A | 10 | % | 0.5 | ||||
| B | 23 | 1.6 | |||||
| C | 18 | 1.8 | |||||
| D | 21 | 2.0 | |||||
| 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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Standards Of Value
Authors: Jay E. Fishman, Shannon P. Pratt, William J. Morrison
2nd Edition
1118138538, 978-1118138533
