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An all-equity firm is considering the following projects. Projects Gamma Mega Maxi Beta 0.78 1.36 1.40 Expected Return (%) 15% 13% 16% Assume the T-bill

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An all-equity firm is considering the following projects. Projects Gamma Mega Maxi Beta 0.78 1.36 1.40 Expected Return (%) 15% 13% 16% Assume the T-bill rate is 5% and the market risk premium is 11%. The firm's cost of capital is 15%. Which projects would be incorrectly rejected if the firm's overall cost of capital is used as a hurdle rate? A) Gamma and Maxi B) Maxi C) Gamma D) Mega E) None of them

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