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1 7 . You are attempting to estimate the cost of capital for a new project. Your firm has a current debt - to -

17. You are attempting to estimate the cost of capital for a new project. Your firm has a current debt-to-equity ratio of 1.4 and faces a corporate tax rate of 35%. Given that your equity is priced to yield 15.9% EAR and your debt yields on average 7.1% p.a., what is the estimated cost of capital for your firm?
Please report your answer so that if your WACC is 10% you enter the value 10(without decimal notation, not 0.10).

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