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An all-equity firm is considering the following projects: ...

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Finance

An all-equity firm is considering the following projects:

Project Beta IRR
W .57 9.2 %
X .77 10.3
Y 1.27 14.1
Z 1.74 17.0

The T-bill rate is 5 percent, and the expected return on the market is 12 percent.
a.

Which projects have a higher/lower expected return than the firms 12 percent cost of capital?

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