PPT Slide

Accounting beta. Run regression between project’s ROA and S&P index ROA. Accounting betas are correlated (0.5-0.6) with market betas.But normally can’t get data on new projects’ ROAs before the capital budgeting decision has been made.

Accounting beta. Run regression between project’s ROA and S&P index ROA. Accounting betas are correlated (0.5-0.6) with market betas. But normally can’t get data on new projects’ ROAs before the capital budgeting decision has been made.