What discount rate should be assigned to the project

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Problem 1: Company A is an all-equity financed firm that has a beta of 1.14 and a cost of equity of 12.8 recent. The risk-free rate of return is 2.8 percent. The firm is currently considering a project that has a bet os 1.03 and a project life os 6 years.

Question 1: What discount rate should be assigned to this project?

Reference no: EM132470808

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