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Straighten Technologies has no debt. Their beta is .88. The market risk premium is 7.5 percent and the risk-free rate is 3.9 percent. The company
Straighten Technologies has no debt. Their beta is .88. The market risk premium is 7.5 percent and the risk-free rate is 3.9 percent. The company is evaluating a project that is riskier than their normal projects, so they want to apply an adjustment of 2.3 percent to the project's discount rate. What should the firm use as the required rate of return for the project?
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