An all-equity firm is considering the following projects: Project W X Y Z Beta .54 .91 1.09 1.83 IRR 10.1% 10.6 14.1 17.1 The T-bill rate is 5.1 percent, and the expected return on the market is 12.1 percent. a. Which projects have a higher/lower expected return than the firm's 12.1 percent cost of capital?

An all-equity firm is considering the following projects: Project W X Y Z Beta .54 .91 1.09 1.83 IRR 10.1% 10.6 14.1 17.1 The T-bill rate is 5.1 percent, and the expected return on the market is 12.1 percent. a. Which projects have a higher/lower expected return than the firm's 12.1 percent cost of capital?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter10: Project Cash Flows And Risk

Section: Chapter Questions

Problem 20PROB

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