Data table: Debt outstanding (book value, AA-rated) $420 million Number of shares of common stock 76 million Stock price per share $12.78 Book value of
Data table:
Debt outstanding (book value, AA-rated) $420 million
Number of shares of common stock 76 million
Stock price per share $12.78
Book value of equity per share $6.07
Beta of equity 1.17
IDX Tech is looking to expand its investment in advanced security systems. The project will be financed with equity. You are trying to assess the value of the investment and must estimate its cost of capital. You find the following data for a publicly-traded firm in the same line of business: (data table). By making some realistic assumptions, estimate the project's beta.
The estimated project's beta is
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
From the data Market value of Equity No of shares ...
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Step: 2
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Authors: John Wild
5th edition
978-0077408770, 77408772, 978-0077413804
