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What discount rate should assigned to this expansion project

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Reference no: EM133078299

Question - A firm has a beta of 1.00 and is planning an expansion project. The market return is 6.9 percent, and the risk-free rate is 3.4 percent. What discount rate should be assigned to this expansion project?

a. 6.90%

b. 7.15%

c. 7.22%

d. 11.37%

e. 10.30%

Reference no: EM133078299

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