Train plc is an all equity financed established company experienced in the provision of training courses....
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Train plc is an all equity financed established company experienced in the provision of training courses. Shares in Train have a beta value of 1.2. The directors of Train plan to expand their business by building hotels which are located near their training centres. Thirté plc is a listed hotel company with zero gearing. Its shares have a beta value of 1.5. The market premium for risk is 8% and the risk-free rate is 4%. Required What cost of equity should go into the NPV to appraise the new investment in hotels? Train plc is an all equity financed established company experienced in the provision of training courses. Shares in Train have a beta value of 1.2. The directors of Train plan to expand their business by building hotels which are located near their training centres. Thirté plc is a listed hotel company with zero gearing. Its shares have a beta value of 1.5. The market premium for risk is 8% and the risk-free rate is 4%. Required What cost of equity should go into the NPV to appraise the new investment in hotels?
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Related Book For
Governmental and Nonprofit Accounting
ISBN: 978-0132751261
10th edition
Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi
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