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What is the cost of capital for this project

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Question - Cromkwells interiors is considering a project that is equally as risky as the firms current operations. The firm has a cost of equity of 15% and a pretax cost of debt of 8.4%. The debt equity ratio is .65 and tax rate is 30%. What is the cost of capital for this project?

a. 11.68%

b. 11.08%

c. 12.01%

d. 10.29%

e. 11.41%

Reference no: EM132804501

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