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Business, 27.08.2020 02:01 kiarrafryer
Decker's is a chain of furniture retail stores. Furniture Fashions is a furniture maker and a supplier to Decker's. Decker's has a beta of 1.34 as compared to Furniture Fashion's beta of 1.14. The risk-free rate of return is 3.6 percent and the market risk premium is 8 percent. Both firms are all equity financed. What discount rate should Decker's use if it considers a project that involves the manufacturing of furniture?
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Decker's is a chain of furniture retail stores. Furniture Fashions is a furniture maker and a suppli...
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