Projects Cash Flows Project Life Beta Investment 1 $3,150,000 5 2.2 $10,000,000 2 $5,250,000 7 1.7 $20,000,000

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Projects Cash Flows Project Life Beta Investment 1 $3,150,000 5 2.2 $10,000,000

2 $5,250,000 7 1.7 $20,000,000

3 $4,600,000 5 1.3 $15,000,000

4 $6,255,000 6 1 $25,000,000

5 $7,925,000 5 1.1 $30,000,000

Risk-free rate= 5% Market Risk Premium= 6%

what would be the company beta using only profitable projects which are projects 2 3 and 4

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Mar 30, 2023 03:51 AM

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Projects Cash Flows Project Life Beta Investment 1 $3,150,000 5 2.2 $10,000,000 2 $5,250,000 7 1.7 $20,000,000

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To calculate the beta of a company using only profitable projects we need to use the w... View the full answer

Income Tax Fundamentals 2013

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