Suppose That a Foreign Project Has a Beta of the Risk?free

question 26

Multiple Choice

Suppose that a foreign project has a beta of the risk?free return is 8% and the required return on the market is estimated at 17%. Then cost of capital for the project is

• A) 24.2%
• B) 19.3%
• C) 18.1%
• D) 15.4%

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