10. IDX Tech is looking to expand its investment in advanced security systems. The project will be financed with equity.

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10. IDX Tech is looking to expand its investment in advanced security systems. The project will be financed with equity.

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10 Idx Tech Is Looking To Expand Its Investment In Advanced Security Systems The Project Will Be Financed With Equity 1
10 Idx Tech Is Looking To Expand Its Investment In Advanced Security Systems The Project Will Be Financed With Equity 1 (32.82 KiB) Viewed 22 times
10. IDX Tech is looking to expand its investment in advanced security systems. The project will be financed with equity. You are trying to assess the value of the investment and must estimate its cost of capital. You find the following data for a publicly-traded firm in the same line of business: Debt Outstanding (book value, AA-rated) $423 million Number of shares of common stock $67 million Stock price per share $17.29 Book value of equity per share $6.24 Beta of equity 1.19 What is your estimate of the project's beta? What assumptions do you need to make?
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