Question
T4 Project Beta Expected Return in % 1 0.65 10 2 0.85 12 3 1.00 13 4 1.25 14 5 1.50 15 RF = 3%;
T4
Project Beta Expected Return in %
1 0.65 10
2 0.85 12
3 1.00 13
4 1.25 14
5 1.50 15
RF = 3%; The Equity Risk Premium is 7% and the WACC is 10%.
a. List projects that you would accept.
b. Which projects have been rejected usinf the cost of capital as a hurdle rate ?
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Microeconomics
Authors: Glenn Hubbard, Anthony O'Brien
7th Edition
0134737504, 978-0134737508
