Explain the role of beta in determination of a companys cost, Finance Basics

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Explain the role of beta in determination of a companys cost

Problem

Explain what is meant by the equity beta for a company's shares and the determinants of a ?rm's equity beta in practice. Your discussion should also explain the role of beta in the determination of a company's cost of capital to be employed in the evaluation of a ?rm's investment projects.

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Finance Basics: Explain the role of beta in determination of a companys cost

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