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Business, 17.12.2021 01:10 hernandezeileen20

R. S. Green is a chain of furniture retail stores. Morris Industries is a furniture maker and a supplier to R. S. Green. R. S. Green has a beta of 1.38 as compared to Morris Industries' beta of 1.15. The risk-free rate of return is 3.3 percent and the market risk premium is 8 percent. Both firms are all equity financed. What discount rate should R. S. Green use if it considers a project that involves the manufacturing of furniture

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