Question
Projects Cash Flows Project Life Beta Investment 1 $3,150,000 5 2.2 $10,000,000 2 $5,250,000 7 1.7 $20,000,000 3 $4,600,000 5 1.3 $15,000,000 4 $6,255,000 6
Projects Cash Flows Project Life Beta Investment 1 $3,150,000 5 2.2 $10,000,000
2 $5,250,000 7 1.7 $20,000,000
3 $4,600,000 5 1.3 $15,000,000
4 $6,255,000 6 1 $25,000,000
5 $7,925,000 5 1.1 $30,000,000
Risk-free rate= 5% Market Risk Premium= 6%
what would be the company beta using only profitable projects which are projects 2 3 and 4
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
