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Omega Inc. is an unlevered firm that is equally as risky as the market. U.S. Treasury bills are yielding 3.2 percent and the market risk

Omega Inc. is an unlevered firm that is equally as risky as the market. U.S. Treasury bills are yielding 3.2 percent and the market risk premium is 7.5 percent. What discount rate should be assigned to a project that has the same risks as Omega? A. 3.2 percent B. 10.7 percent C. 7.5 percent D. 4.3 percent

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