You
are considering the capital budgeting project j with a life expectancy
of 20 years. The short-term government rate (rf) is 5%, the beta of
firms that produce products similar to project j is 1.2, and the return
on the market (rm) the last 20 years has been 10%. What is the cost of
capital for this project?
a. 9.00%
b. 10.00%
c. 11.00%
d. cannot tell
a. 9.00%
b. 10.00%
c. 11.00%
d. cannot tell
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