Question: Explainantion needed with formula and not excel sheet please! Cole is working on a new project and has identified the following comparable firms (it's a
Explainantion needed with formula and not excel sheet please!
Cole is working on a new project and has identified the following comparable firms (it's a weird project): Beta of Equity D/E Ratio Beta of Debt Cabela's 1.40 0.50 0.20 Pfizer 1.30 0.25 0.05 Tesla 1.52 0.60 0.40 The market risk premium is 6% and the risk-free rate is 2%. What is the appropriate discount rate to use for your new project
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