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2 4polints A firm has $88 billion in equity, $81 billion in debt, and a tax rate of 21%, The pre-tax cost of debt and

2 4polints A firm has $88 billion in equity, $81 billion in debt, and a tax rate of 21%, The pre-tax cost of debt and equity are 1.7%, and 9.8%, respectively. What discount rate should it use for a typical project? $0.0550.05$0.0550.06

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