06.44%. Question 13 (1 point) Venus Inc. is considering investing in the hotel business. The company has a D/E ratio of 1.3, a before-tax cost of debt of 8%, and a marginal tax rate of 40%. Luxury Hotels is a publicly traded company that operates only in the hotel industry. The company has a D/E ratio of 1.8, an equity beta of 0.9, and a marginal tax rate of 35%. The risk-free rate is 6% and the expected market risk premium is 7%. The weighted average cost of capital that Venus Inc. should use to evaluate the risk of entering the hotel industry is closest to: 9.70% 7.96% 07.57%