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Your firm has a beta of 1.7 and just paid a dividend of $3.50 that is expected to grow at 8%. You are considering a project that would decrease your growth rate to 6% and increase your beta to 1.8. If the risk-free rate is 2% and the market risk premium is 5.5%, should you undertake the project?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92102158

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