The Market Outlet has a beta of 1.38 and a cost of equity of 14.945 percent.The risk-free rate of return is 4.25 percent.What discount rate should the firm assign to a new project that has a beta of 1.25?
A) 13.54 percent.
B) 13.72 percent.
C) 13.94 percent.
D) 14.14 percent.
E) 14.36 percent.
Correct Answer:
Verified
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