Question 10

"An all-equity frm that has a firm-wide WACC of 14.20% is considering the projects shown below: (Project A: 15.50% Expected Return, 2.79 Beta); (Project B: 8.80% Expected Return, 1.29 Beta); (Project C: 17.70% Expected Return, 2.43 Beta); (Project D: 16.00% Expected Return, 1.14 Beta); If the T-bill rate is 3.10%, and the market risk premium is 9.20%, what should the project-specific WACC be for PROJECT B?"

		17.42%
		28.77%
		25.46%
		13.59%
		10.97%
		14.20%
		14.97%