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F9 December 2013 Question 2 Cost of capital

This topic has 1 reply, 1 voice, and was last updated 7 years ago by DreamerSK.

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November 30, 2016 at 12:34 pm #352562
DreamerSK
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What does the equity beta of 1.6 in the question relate to? It says it is the equity beta of Card Co. so I am trying to figure why it is stated as 1.6 and we worked it out to be .895.
December 7, 2016 at 6:14 am #354837
DreamerSK
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I found the answer below the lecture. It is because 1.6 is the riskiness of Card and not the project.
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