Question
On-line Text Co. has four new text publishing products that it must decide on publishing to expand its services. The firm's WACC has been 17%.
On-line Text Co. has four new text publishing products that it must decide on publishing to expand its services. The firm's WACC has been 17%. The projects are of equal risk, s of 1.6. The risk-free rate is 7% and the market rate is expected to be 12%. The projects are expected to earn as follows:
| Project W | 14% |
| Project X | 18% |
| Project Y | 17% |
| Project Z | 15% |
What projects should be selected and why?
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International Finance
Authors: Keith Pilbeam
4th Edition
0230362893, 978-0230362895
