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Business, 26.08.2019 20:20 jamilamiller200

Honest abe’s is a chain of furniture retail stores. integral designs is a furniture maker and a supplier to honest abe’s. honest abe’s has a beta of 1.38 as compared to integral designs' beta of 1.12. both firms carry no debt, i. e., are 100% equity financed. the risk-free rate of return is 3.5 percent and the market risk premium is 8 percent. what discount rate should honest abe's use if it considers a project that involves the manufacturing of furniture?

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