Johnson Inc. estimates the risk-free rate to be 3% and the market risk premium to be 7%. The company's beta is 1.3. What is the appropriate discount rate that Johnson should use when evaluating a new venture project?

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Johnson Inc. estimates the risk-free rate to be 3% and the market risk premium to be 7%.   The company's beta is 1.3.   What is the appropriate discount rate that Johnson should use when evaluating a new venture project?

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The Answer of Johnson Inc. estimates the risk-free rate to be 3% and the market risk premium to be 7%.   The company's beta is 1.3.   What is the appropriate discount rate that Johnson should use when evaluating a new venture project?