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 (Round to two decimal places.) Data table REDD (Click on the following icon in order to copy its contents into a spreadsheet.) Debt outstanding (book value, AA-rated) Number of shares of common stock Stock price per share Book value of equity per share Beta of equity Print Done $330 million 93 million $12.85 $7.19 1.23 - X
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 (Round to two decimal places.) Data table REDD (Click on the following icon in order to copy its contents into a spreadsheet.) Debt outstanding (book value, AA-rated) Number of shares of common stock Stock price per share Book value of equity per share Beta of equity Print Done $330 million 93 million $12.85 $7.19 1.23 - X
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
Related questions
Question
Help me please get the correct ansssss
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
EXCE
(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)
Number of shares of common stock
Stock price per share
Book value of equity per share
Beta of equity
Print
Done
$330 million
93 million
$12.85
$7.19
1.23
- X
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education