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If a companys debt to equity ratio in market values is 1.5. The firms effective tax rate is 39%, the average YTM of the companys
If a companys debt to equity ratio in market values is 1.5. The firms effective tax rate is 39%, the average YTM of the companys debt is 9.5%. The firms beta is 1.8, risk-free rate is 2.75% and the Market Risk Premium is 10.25%. Given this data which of the following projects should be accepted if they are all risk typical to the firm.
Project A 11.45%
Project B 13.15%
Project C 9.15%
Project D 14.85%
Project E 12.7%
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