Question
Polycorp is considering a new project. The project has beta () that is twice that of the firm's existing assets (projects). Polycorp's existing assets have
Polycorp is considering a new project. The project has beta () that is twice that of the firm's existing assets (projects). Polycorp's existing assets have a required return (cost of capital) of 10%, the market risk premium is 5% and the risk free rate is 4%. Calculate the beta for the new project. Provide your answer accurate to two decimal places.
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The Financial System Financial Regulation And Central Bank Policy
Authors: Thomas F. Cargill
1st Edition
1107035678, 9781107035676
