What is the required rate of return on the lathe

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Reference no: EM131183106

Ricks firm has a beta of 1.3, when risk free rate is 7% and market return is 12%. the firm now sells 10 percent of its assets (beta = 1.2) and uses the proceeds to purchase another asset, a lathe machine, with a beta of .8

What is the required rate of return on the lathe?

What is the new overall required rate of return for ricks firm?

Reference no: EM131183106

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What is the required rate of return on the lathe : Ricks firm has a beta of 1.3, when risk free rate is 7% and market return is 12%. the firm now sells 10 percent of its assets (beta = 1.2) and uses the proceeds to purchase another asset, a lathe machine, with a beta of .8 What is the required rate o..

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