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Home Q & A Board Other Fields Homework Help Business Finance
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Memphic Memphic
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6 years ago
Your firm is planning to invest in a new power generation system.  Galt Industries is an all equity firm that specializes in this business.  Suppose Galt's equity beta is 0.75, the risk-free rate is 3%, and the market risk premium is 6%.  If your firm's project is all equity financed, then your estimate of your cost of capital is closest to:
A) 5.25%
B) 6.00%
C) 6.75%
D) 7.50%
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
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pbrown223pbrown223
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6 years ago
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Memphic Author
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6 years ago
Thanks for your help!!
Fleury
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Yesterday
Thanks
Brownr40
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2 hours ago
Good timing, thanks!
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