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Piedmont Hotels is an all-equity firms with 48,000 shares of stock outstanding. The stock has a beta of 1.19 and a standard deviation of 14.8%.
Piedmont Hotels is an all-equity firms with 48,000 shares of stock outstanding. The stock has a beta of 1.19 and a standard deviation of 14.8%. The market risk premium is 7.8% and the risk-free rate of return is 4.1%. The company is considering a project that it considers riskier than its current firm set as the required rate of return for the project?
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