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The Treasury bill rate is 4% and the market risk premium is 14%. Project Beta Internal Rate of Return, % P 0.60 14 Q 0.00
The Treasury bill rate is 4% and the market risk premium is 14%.
Project | Beta | Internal Rate of Return, % | |||
P | 0.60 | 14 | |||
Q | 0.00 | 10 | |||
R | 1.00 | 18 | |||
S | 0.10 | 6 | |||
T | 0.80 | 20 | |||
a. What are the project costs of capital for new ventures with betas of 0.35 and 1.45? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
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