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Question 8 Consider an all equity company (the company only issue common stock). The beta of the company's common stock is 1.10. The risk free
Question 8 Consider an all equity company (the company only issue common stock). The beta of the company's common stock is 1.10. The risk free rate is 5 percent and the market risk premium is 12 percent. The company is currently evaluating a project with an expected return of 19.5 percent and a beta of 1.30. Should the company accept the project? Why or why not
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