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: By making some realistic assumptions, estimate the project's beta. The estimated project's beta is Data table (Round to two decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) Debt outstanding (book value, AA-rated) $344 million Number of shares of common stock 89 million $14.53 $5.88 1.29 Stock price per share Book value of equity per share Beta of equity

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: By making some realistic assumptions, estimate the project's beta. The estimated project's beta is Data table (Round to two decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) Debt outstanding (book value, AA-rated) $344 million Number of shares of common stock 89 million $14.53 $5.88 1.29 Stock price per share Book value of equity per share Beta of equity

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

8th Edition

ISBN:9781285065137

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter10: The Cost Of Capital

Section: Chapter Questions

Problem 2DQ

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Hello can you show how to graph this and how i can figure out what the beta is oout of this informatio. There is no expected return, in the second picture i have uploaded is the solutions for it, i guess i just have to assume a expected return which they assumed it to be 10% Which formula was used to calculate beta? why does it make sense to divide expected return with treynor to get beta? - This is the whole problem
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