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Question 16 (Mandatory) (2 points) An all-equity firm is considering the following projects. Projects Beta Expected Return (%) Gamma 0.78 15% Mega 1.36 13% Maxi
Question 16 (Mandatory) (2 points) An all-equity firm is considering the following projects. Projects Beta Expected Return (%) Gamma 0.78 15% Mega 1.36 13% Maxi 1.40 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? ) Maxi B) Gamma and Maxi KUID C) Gamma (D) None of them KLE) Mega
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