What is the cost of capital for this project

Reference no: EM13271315

Cromwell's Interiors is considering a project that is equally as risky as the firm's current operations. The firm has a cost of equity of 13.7 percent and a pretax cost of debt of 8.4 percent. The debt-equity ratio is .65 and the tax rate is 40 percent. What is the cost of capital for this project?

9.97 percent
10.29 percent
11.62 percent
11.38 percent
12.30 percent

Reference no: EM13271315

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