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
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text: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
X
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