Baltazar Group is planing on diversifying into the restaurant industry. As a result, Baltazar's beta...
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Baltazar Group is planing on diversifying into the restaurant industry. As a result, Baltazar's beta would rise to 1.5 from 1.2 and the expected long term growth rate in the firm's earnings would increase from 13 percent to 18 percent. Currently the risk free rate is 5.0 percent and the market risk premium is 7.5 percent. If Baltazar's current dividend is Php25.70 should Baltazar diversify into the restaurant industry?
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