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If the risk-free rate is 5% and the equity risk premium is 5%, then a corporation with 100% equity financing and a beta of 0.85
If the risk-free rate is 5% and the equity risk premium is 5%, then a corporation with 100% equity financing and a beta of 0.85 is a:
- A. Promising investment if the ROIC is 9.20
- B. Poor investment if the ROIC is 12.25
- C. Promising investment if the ROIC is 8.00
- D. Poor investment if the ROIC is 15.25
- E. None of the above
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