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The Treasury bill rate is 3% and the market risk premium is 7%. Project Beta Internal ROR P 0.75 10 Q 0 8 R 1.00
| The Treasury bill rate is 3% and the market risk premium is 7%. |
| Project | Beta | Internal ROR |
| P | 0.75 | 10 |
| Q | 0 | 8 |
| R | 1.00 | 12 |
| S | 0.15 | 9 |
| T | 0.90 | 9 |
| a. | What are the project costs of capital for new ventures with betas of .50 and 1.11 |
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Handbook Of The Economics Of Finance
Authors: George M. Constantinides, Milton Harris, Rene M. Stulz
1st Edition
044459406X, 978-0444594068
