IKON Is Financed Entirely with Equity, and Its Beta Is

question 9

Multiple Choice

IKON is financed entirely with equity, and its beta is 1.31. If the current risk-free rate is 6.25% and the expected market return is 12.8%, what is IKON's required rate of return on a project of average risk?

• A) 8.58%
• B) 14.83%
• C) 17.65%
• D) 12.81%

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