Silo Mills is an all-equity financed firm that has a beta of 1.14 and a cost of
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Question:
Silo Mills is an all-equity financed firm that has a beta of 1.14 and a cost of equity of 12.8 percent. The risk-free rate of return is 2.8 percent. The firm is currently considering a project that has a beta of 1.03 and a project life of six years. What discount rate should be assigned to this project?
A. 13.33 percent
B. 11.84 percent
C. 13.62 percent
D. 13.84 percent
E. 12.09 percent
Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0077283292
5th edition
Authors: Bradford D. Jordan, Thomas W. Miller
Posted Date: