Wexler & Associates is considering the following projects: Project Beta 0.69 Project's Expected Return 9.0%...
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Wexler & Associates is considering the following projects: Project Beta 0.69 Project's Expected Return 9.0% w 0.88 11.0% X 1.32 12.8% Y 1.74 14.9% Z Assume that the T-bill rate is 4%, and the expected return on the market is 11%. a. Which projects have a higher expected return than Wexler & Associates' 11% cost of capital? And which projects have a higher expected return than Wexler & Associates' 11% cost of capital? b. So, based on the 11% cost of capital alone, which projects would you have accepted as the financial manager for Wexler & Associates? c. Which projects should be accepted? You need to show your full calculations that enabled you to d. decide. Now compare your answers in (a) and (b) and make a conclusion f. Which projects would be incorrectly accepted or rejected if the overall cost of capital wer d to e
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