单选题
编号:2686190
1. Jay Company has a debt-to-equity ratio of 2.0. Jay is evaluating the cost of equity for a project in the same line of business as Cass Company and will use the pure-play method with Cass as the comparable firm. Cass has a beta of 1.2 and a debt-to-equity ratio of 1.6. The project beta most likely:
- A.Will be less than Jay Company's beta.
- B.Will be greater than Jay Company's beta.
- C.Could be greater than or less than Jay Company's beta.