Suppose Blank Company has only one project, as forecast above, and an unlevered cost of equity of 8%. If the company uses no leverage, what is expected return to equity holders?
A) 8.0%
B) 11.6%
C) 9.33%
D) 30.0%

Name: Suppose Blank Company has only one project, as forecast above, and an unlevered cost of equity of 8%. If the company uses no leverage, what is expected return to equity holders? A) 8.0% B) 11.6% C) 9.33% D) 30.0%
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Question

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A) Unlevered cost of equity is given at 8%.

Suppose Blank Company Has Only One Project, as Forecast Above