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Question 5 4 pts An all-equity firm is considering the projects shown below. The T-bill rate is 3% and the market risk premium is 6%.
Question 5 4 pts An all-equity firm is considering the projects shown below. The T-bill rate is 3% and the market risk premium is 6%. If the firm uses its current WACC of 12% to evaluate these projects, which project(s), if any, will be incorrectly rejected? Project Beta Expected Return 9% A 0.8 20% 1.2 C 13% 1.4 D 17% 1.5 None of the projects would be incorrectly rejected. Both Projects A and C would be incorrectly rejected. Projects A, B and C would be incorrectly rejected. O Only Project A would be incorrectly rejected
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