Treasury bills interest rate is 4 and market risk premium is 8 project Beta Internal rate of return, P 85 14 Q 0 10 R 1 0 11 S 25 11 T 6 13 a What are the project costs of capital for startups with betas of 60 and 1 15 (Do not round up intermediate calculations Enter your answers as a percentage, r...

SOLUTION To calculate the cost of capital for each project we can use the Capital A ...

Treasury bills interest rate is 4% and market risk premium is 8%. project Beta Internal rate of

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Treasury bills interest rate is 4% and market risk premium is 8%.

project	Beta		Internal rate of return, %
P		.85		14
Q		0		10
R		1.0		11
S		.25		11
T		.6		13

a.	What are the project costs of capital for startups with betas of .60 and 1.15? (Do not round up intermediate calculations. Enter your answers as a percentage, rounded to 2 decimal places.)

Beta	cost of capital
.60	%
1.15	%

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: May 05, 2023 08:49 AM

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Treasury bills interest rate is 4% and market risk premium is 8%. project Beta Internal rate of

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