Ricks firm has a beta of 13 when risk free rate is 7 and, Ask an Expert

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Ricks firm has a beta of 1.3, when risk free rate is 7% and market return is 12%. the firm now sells 10 percent of its assets (beta = 1.2) and uses the proceeds to purchase another asset, a lathe machine, with a beta of .8

What is the required rate of return on the lathe?

What is the new overall required rate of return for ricks firm?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91939210

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