Determine the Pure Project Beta of a Project That Has

question 49

Multiple Choice

Determine the pure project beta of a project that has 30% debt and 70% equity.The beta for the company is 1.4 and a tax rate of 40%.

• A)1.11
• B)1.56
• C)1.83
• D)1.05

---

Definitions:

Accounting System

An organized set of manual and computerized accounting methods, procedures, and controls established to gather, record, classify, analyze, summarize, interpret, and present accurate and timely financial data.

Accounting Report

Documents that summarize the financial performance and position of an entity, such as income statements and balance sheets.

SEC Approval

The official authorization from the Securities and Exchange Commission for various financial activities and filings, ensuring compliance with regulations.

Effective Accounting Information System

A system that accurately collects, records, stores, and processes financial data to produce information useful for decision-making.