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The Treasury bill rate is 4% and the market risk premium is 9%. Internal Rate of Return (percent) Project Beta P 0.50 0.00 2.00
The Treasury bill rate is 4% and the market risk premium is 9%. Internal Rate of Return (percent) Project Beta P 0.50 0.00 2.00 0.20 1.90 Q R S T Beta 10 0.25 1.35 8 a. What are the project costs of capital for new ventures with betas of 0.25 and 1.35? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. 22 9 24 Cost of Capital % %
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Financial Reporting and Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
7th edition
1259722651, 978-1259722653
