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Required rate of return on project-sky corporation

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Reference no: EM132618345

Sky Corporation is considering an investment in a project that is similar in risk to its existing projects. The firm makes no use of debt and is entirely financed by common stock with a beta of 1.8. The expected return on the market portfolio is 15 percent and the risk-free rate is 5 percent.

Required:

Calculate the required rate of return on this project.

Reference no: EM132618345

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