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Telsar currently has a beta of 1.5 and just paid a dividend of $2.30 that is expected to grow at 6%. They are considering entering
Telsar currently has a beta of 1.5 and just paid a dividend of $2.30 that is expected to grow at 6%. They are considering entering a new product line that could increase their expected growth rate to 8% and also increase their beta to 1.9. If the risk-free rate is 3% and the expected market return is 9%, should they adopt the new product line? O O Yes O Not enough information to answer O No
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