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You are currently considering an investment in a project in the energy sector. The investment...

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You are currently considering an investment in a project in the energy sector. The investment has the same riskiness as Exxon Mobil stock (ticker: XOM). Using the data in Table 13.1 E and the table , calculate the cost of capital using the FFC factor specification if the current risk-free rate is 3.5% per year. The cost of capital using the FFC factor specification is %. (Round to two decimal places.) Data table Data table (Click on the following icon 2 in order to copy its contents into a spreadsheet.) (Click on the following icon in order to copy its contents into a spreadsheet.) MKT - If GE 1.22 FFC Portfolio Average Monthly Returns, 1927-2018 Factor Portfolio Average Monthly Return (%) 95% Confidence Band (%) 0.68 +0.32 SMB 0.25 +0.19 HML 0.39 +0.21 PR1YR 0.61 +0.28 Factor MKT SMB HML PR1YR Estimated Factor Betas, 2007-2017 MSET XOM 1.10 0.63 -0.71 -0.39 -0.01 0.14 0.02 0.22 -0.29 0.78 -0.22 Print Done Print Done

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