16. Randy's Ranch House Caf has an adjusted Weighted Average Cost Capital (WACC) of 10.08%. The company has a capital structure consis of 70% equity and 30% debt, a cost of equity of 12.00%, debt of 8.00%, and a tax rate of 30%. Randy is considering expanding by building a new Randy's Ranch House Caf in a distant city and considers the project to be riskier than his current operation. He estimates his existing beta to be 1.0, the required return on the market portfolio to be 12.00%, the risk-free rate to be 3.00%, and the beta for the new project to be 1.40. Given this information, and assuming the cost of debt will not change if Randy undertakes the new project, what adjusted Weighted Average Cost of Capital (WACC) should be used in his decision-making? of ting a before-tax cost of 10.08% 12.60% 13.32% 14.16% a. b. d