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Nero Voilins has the following capital structure Security Beta Debt Preferred stock Common Stock 0 0.20 1.20 Total Market Value (OMR Milliomk 100 OMR 40

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Nero Voilins has the following capital structure Security Beta Debt Preferred stock Common Stock 0 0.20 1.20 Total Market Value (OMR Milliomk 100 OMR 40 OMR 299 a. b. What is the firm's asset beta? Assume that the CAPM is correct. What discount rate should Nero set for investments that expand the scale of its operations without changing its asset beta? Assume a risk-free rate of 5 percent and a market risk premium of 6 percent

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