Cost of capital equal to the expected return on the market

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Reference no: EM13767647

a t-bill rate is 6%

firm is 100% equity financed

cost of capital equal to the expected return on the market which is 12%

project Used books 0.85 Beta 12% expected return

project Chair 0.8 Beta 13% expected return

project drinks 1.8 Beta 14% expected return

project mce 1.6 Beta 16% expected return

a) if the projects are mutually exclusive, which one would be accept. (Show work please)

Reference no: EM13767647

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Cost of capital equal to the expected return on the market : cost of capital equal to the expected return on the market which is 12%. project Used books 0.85 Beta 12% expected return. if the projects are mutually exclusive, which one would be accept.

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