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please help me with these. thanks in advance. 10 4 I am buying a firm with an expected perpetual cash flow of $420 but am
please help me with these. thanks in advance.
10
4
I am buying a firm with an expected perpetual cash flow of $420 but am unsure of its risk. If I think the beta of the firm is , when the beta is really 1, how much more will I offer for the firm than it is truly worth? Assume the risk-free rate is 7% and the expected rate of return on the market is 15%. (Input the amount as a positive value.) Present value difference Return to questio You are a consultant to a large manufacturing corporation considering a project with the following net after-tax cash flows (in millions of dollars): Years from Now After-Tax CF -37 12 24 1-9 10 = 15% The project's beta is 1.6. Assuming rf = 5% and E(rm) a. What is the net present value of the project? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Answer is complete but not entirely correct. Net present value 17.59 million
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