What discount rate should the firm assign to a new project


The Market Outlet is an all-equity financed firm with a beta of 1.38 and a cost of equity of 14.945 percent. The risk-free rate of return is 4.25 percent. What discount rate should the firm assign to a new project that has a beta of 1.25?

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Financial Management: What discount rate should the firm assign to a new project
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