The stock of Brendan B Private Equity Firm has a beta of 1.4. The firm is 100 percent equity financed. Brendan is considering a number of capital budgeting financing projects that will double the firm's size. The risk-free rate is 7%. What is the appropriate discount rate for these new projects if the market risk premium is 7.4%?

Answer rating: 100% (QA)

The appropriate discount rate for the new projects can be ... View the full answer