How much more will you offer for the firm


You are buying a firm with an expected perpetual cash flow of $1000 but are unsure of its risk. If you think the beta of the firm is zero, when the beta is really 1. How much more will you offer for the firm than it is really worth? Assume the risk free rate is 8% and expected rate of return on the market is 18%.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: How much more will you offer for the firm
Reference No:- TGS0730650

Expected delivery within 24 Hours