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What is brad estimate for the project beta

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Reference no: EM132459140

EastWest Co. is a transportation company considering expanding their business by purchasing warehouses in the Midwest. To estimate the value of the expansion, Brad must estimate the cost of capital and he finds information on comparables in the storage business.

Debt Outstanding (market value, risk free) $ 300 million

Market value of equity per share $ 5/share

Number shares outstanding 70 million

Beta of equity 1.3

Based on the information, what is Brad's estimate for the project's beta?

a. 0.8

b. 1

c. 1.3

d. 1.4

e. None of the above

Reference no: EM132459140

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