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With a proposed project, the firms beta would decline from 1.2 to 0.9, however, this would cause the companys constant growth rate in earnings and

With a proposed project, the firms beta would decline from 1.2 to 0.9, however, this would cause the companys constant growth rate in earnings and dividends to decrease from 7% to 5%. a) Should the project be accepted?, assuming the market rate of return(Km) =12%, the risk-free rate(Krf) = 9% and the last dividend the company paid(D0) = $2. b) Assume all the facts as given above except the change in beta. To what extent beta needs to be decreased to make the project acceptable? pls show all cals. donot use excel pls

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