Barkley Inc. stock and the Market provided the following returns over the past 5 years Year Barkley
Question:
Barkley Inc. stock and the Market provided the following returns over the past 5 years
Year Barkley Market
2015 -5% -3%
2016 21 10
2017 9 4
2018 23 11
2019 31 15
Barkley finances his projects only with retained earnings and uses the CAPM with historical beta to determine his cost of equity. The risk-free rate on Treasury securities is 7 percent, and the market risk premium is 5 percent. Barkley is considering a project that has an initial cost, t=o, of $2,000 and is expected to provide cash flows of $1,000 per year for 3 years.
Determine: el IRR
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill