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You are giving the following information regarding a company: The equity beta is 1.40. The debt beta is 0.15. The debt-equity ratio is 0.40. Estimate

You are giving the following information regarding a company:

  • The equity beta is 1.40.
  • The debt beta is 0.15.
  • The debt-equity ratio is 0.40.

Estimate the minimum NPV such that a new $250,000 investment will benefit shareholders.

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