The Treasury bill rate is 2% and the market risk premium is 7%. Internal Rate of Project Beta Return, % 0.90 10 0.00 8 3.00 23 0.30 2.60 25 a. What are the project costs of capital for new ventures with betas of 0.65 and 1.65? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Beta Cost of Capital 0.65 1.65 % LORST

The Treasury bill rate is 2% and the market risk premium is 7%. Internal Rate of Project Beta Return, % 0.90 10 0.00 8 3.00 23 0.30 2.60 25 a. What are the project costs of capital for new ventures with betas of 0.65 and 1.65? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Beta Cost of Capital 0.65 1.65 % LORST

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter11: Capital Budgeting And Risk

Section: Chapter Questions

Problem 6P

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