Multiple Choice
Silo Mills has a beta of 0.95 and a cost of equity of 11.9 percent.The risk-free rate of return is 2.8 percent.The firm is currently considering a project that has a beta of 1.03 and a project life of 6 years.What discount rate should be assigned to this project?
A) 13.33 percent.
B) 12.67 percent.
C) 13.62 percent.
D) 13.84 percent.
E) 14.09 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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