Multiple Choice
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?
A) 8.20%
B) 12.10%
C) 13.20%
D) 17.10%
Correct Answer:
Verified
Correct Answer:
Verified
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