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Business, 05.05.2020 07:58 amandaaarmentaa

Louisiana Enterprises, an all-equity firm, is considering a new capital investment. Analysis has indicated that the proposed investment has a beta of 0.55 and will generate an expected return of 5.00%. The firm currently has a required return of 10.75% and a beta of 1.25. The investment, if undertaken, will double the firm's total assets. If rRF is 7.00% and the market risk premium is 5%, should the firm undertake the investment

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