The firm is considering investing in new project

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Reference no: EM131054752

The firm is considering investing in a new project. The target debt ratio is 45%. The stockholders require a 14% return for the project’s level of market risk. If the required return on the firm’s debt is 5% and the firm’s tax rate is 20% what is the appropriate discount rate at which to discount future project cashflows when calculating project NPV?

Reference no: EM131054752

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