An all-equity firm is considering the projects shown below. The T-bill rate is 4 percent and...
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An all-equity firm is considering the projects shown below. The T-bill rate is 4 percent and the market risk premium is 8 percent. Expected Project A Return 9% Beta 0.6 B 21 1.3 C 15 1.5 D 19 1.7 Calculate the project-specific benchmarks for each project. Note: Round your answers to 2 decimal places. Project A % Project B % Project C % Project D % + If the firm uses its current WACC of 14 percent to evaluate these projects, which project, will be incorrectly rejected? Which project, will be incorrectly rejected? An all-equity firm is considering the projects shown below. The T-bill rate is 4 percent and the market risk premium is 8 percent. Expected Project A Return 9% Beta 0.6 B 21 1.3 C 15 1.5 D 19 1.7 Calculate the project-specific benchmarks for each project. Note: Round your answers to 2 decimal places. Project A % Project B % Project C % Project D % + If the firm uses its current WACC of 14 percent to evaluate these projects, which project, will be incorrectly rejected? Which project, will be incorrectly rejected?
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