Question: 02. Peter Inc. has the following projects: Project Name % of Capital Beta (B) Cell Phone Project 40% 1.25 Computer Software Project 25% 1.5 Coffee

02. Peter Inc. has the following projects: Project Name % of Capital Beta (B) Cell Phone Project 40% 1.25 Computer Software Project 25% 1.5 Coffee Shop Project 35% 0.7 For your information, the risk free rate is 4% and the market return 14%. ..) Could "Peter make his company Beta (B) equal to the market Beta (B)? Explain how, no explanation no credits. If I think about Peter Inc. as a portfolio of projects, what is Peter Inc. Beta (P)? b) If I want to invest in Peter Inc., what should be my expected rate of return? e) If the CEO of Peter Inc., "Peter want to introduce a new coffee brand to meet his special need, the new project has Beta (B)- 0.8, what required rate of return should Peter use in evaluation this new project? d) Could "Peter" make his company Beta (B) equal to the market Beta (B)? Explain how, no explanation no credits. What is the expected return on Peter Company? 02. Peter Inc. has the following projects: Project Name % of Capital Beta (B) Cell Phone Project 40% 1.25 Computer Software Project 25% 1.5 Coffee Shop Project 35% 0.7 For your information, the risk free rate is 4% and the market return 14%. ..) Could "Peter make his company Beta (B) equal to the market Beta (B)? Explain how, no explanation no credits. If I think about Peter Inc. as a portfolio of projects, what is Peter Inc. Beta (P)? b) If I want to invest in Peter Inc., what should be my expected rate of return? e) If the CEO of Peter Inc., "Peter want to introduce a new coffee brand to meet his special need, the new project has Beta (B)- 0.8, what required rate of return should Peter use in evaluation this new project? d) Could "Peter" make his company Beta (B) equal to the market Beta (B)? Explain how, no explanation no credits. What is the expected return on Peter Company
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