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Business, 26.11.2019 22:31 mcclendoncassandra

Suppose that two firms, a and b, are considering the same project. the project is in the same risk class as firm a's overall operations. the project has an irr of 13.0 percent. firm a has a beta of 1.2, while firm b's beta is 0.9. the risk-free rate is 4.5 percent and the market risk premium is 7.0 percent. which firm(s) should accept the project? a) firm a onlyb) firm b onlyc) both firms a and bd) neither firm a nor be) the answer cannot be determined without more information.

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Suppose that two firms, a and b, are considering the same project. the project is in the same risk c...

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