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The stock of Brendan B Private Equity Firm has a beta of 1.4. The firm is 100 percent equity financed. Brendan is considering a number

The stock of Brendan B Private Equity Firm has a beta of 1.4. The firm is 100 percent equity financed. Brendan is considering a number of capital budgeting financing projects that will double the firm's size. The risk-free rate is 7%. What is the appropriate discount rate for these new projects if the market risk premium is 7.4%?

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