Two firms firm a and firm b are considering the same new


Two Firms, Firm A and Firm B, are considering the same new project that has a beta of 0.8. The project has an IRR of 9.7%. Firm X has a beta of 1.2 and Firm Y has a beta of 0.6. The risk-free rate is 4% and the expected market risk premium 8%. Which firm(s) should take the project?

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Financial Management: Two firms firm a and firm b are considering the same new
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