Solution-What is the project cost of capital

What is the project cost of capital

Reference no: EM132999925

ETM Corp. is evaluating a new project which has an unlevered beta of 1.1. The project will be financed with 40 percent debt with a cost of 7 percent. The risk-free rate is 5 percent and the market risk premium is 8 percent. If ETM's tax rate is 30 percent, what is the project cost of capital?

Reference no: EM132999925

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What is the project cost of capital : ETM Corp. is evaluating a new project which has an unlevered beta of 1.1. The project will be financed with 40 percent debt with a cost of 7 percent.

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What is the project cost of capital

Reference no: EM132999925

Reference no: EM132999925

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