The Treasury bill rate is 5% and the market risk premium is 8%. Project Beta Internal Rate
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Question:
The Treasury bill rate is 5% and the market risk premium is 8%. |
Project | Beta | Internal Rate of Return, % |
P | 0.50 | 8 |
Q | 0 | 8 |
R | 2.00 | 22 |
S | 0.20 | 9 |
T | 1.90 | 24 |
a. | What are the project costs of capital for new ventures with betas of .25 and 1.35?(Do not round intermediate calculations. Round your answers to 2 decimal places.) |
Beta | Cost of Capital |
0.25 | % |
1.35 | % |
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