2.5/(1+. 13) "1+3-125/CI+ 13 12+ 3-4005 ch 2.58.85 +3.25 x 783 + 3.41 .785 2.21 + 2.45 +6676 $71.43 Defense Electronics Corporation acts to produce radar detection systems value of $1,000, maturity of 20 ye - EXTRA CREDIT (5 points) nics Corporation is considering building an over tection systems. As a consultant to DEC, you have the appropriate discount rate for evaluating this project Cment informatio n DEC includes a r bonds outstanding, each with a coupon rate of 6.595 paid semin .000, maturity of 20 years, and current value of 96% of pur Common Stock: 400,000 shares outs! . Stock: 400.000 shares outstanding with a current value of 589 share. An dividend of $4.74 has just been paio my of $4.74 has just been paid, and dividends are expected to grow by into the foreseeable future. referred Stock: 35.000 shares of 6.5% stock with a par value of S100/share, and a current value of $99 share. Tax rate: DEC's combined tax rate is 34%. ther abilities. DEC has the usual accounts payable and accruals on its balance sheet es not regularly utilize any interest-bearing debt other than the bonds described above. Risk Adjustment: Since the new manufacturing facility is to be built overseas management is suggesting an adjustment factor of +2% to account for the increase riskiness. Showing your work, recommend an appropriate discount rate for DEC's proposed venture. You must show your work to receive any credit. 2.5/(1+. 13) "1+3-125/CI+ 13 12+ 3-4005 ch 2.58.85 +3.25 x 783 + 3.41 .785 2.21 + 2.45 +6676 $71.43 Defense Electronics Corporation acts to produce radar detection systems value of $1,000, maturity of 20 ye - EXTRA CREDIT (5 points) nics Corporation is considering building an over tection systems. As a consultant to DEC, you have the appropriate discount rate for evaluating this project Cment informatio n DEC includes a r bonds outstanding, each with a coupon rate of 6.595 paid semin .000, maturity of 20 years, and current value of 96% of pur Common Stock: 400,000 shares outs! . Stock: 400.000 shares outstanding with a current value of 589 share. An dividend of $4.74 has just been paio my of $4.74 has just been paid, and dividends are expected to grow by into the foreseeable future. referred Stock: 35.000 shares of 6.5% stock with a par value of S100/share, and a current value of $99 share. Tax rate: DEC's combined tax rate is 34%. ther abilities. DEC has the usual accounts payable and accruals on its balance sheet es not regularly utilize any interest-bearing debt other than the bonds described above. Risk Adjustment: Since the new manufacturing facility is to be built overseas management is suggesting an adjustment factor of +2% to account for the increase riskiness. Showing your work, recommend an appropriate discount rate for DEC's proposed venture. You must show your work to receive any credit