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Telex Ltd is an all-equity financed firm and is considering the following projects: Project B Beta 0.40 0.95 1.06 2.20 Expected Return 9% 11% 15%
Telex Ltd is an all-equity financed firm and is considering the following projects: Project B Beta 0.40 0.95 1.06 2.20 Expected Return 9% 11% 15% 19% The company has a 13% cost of capital. Assume a risk-free rate of 6% and an expected return on the market equal to 13%. a. Making use of the security market line identify which projects should be accepted
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