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A company is considering a new project. The company has a debt-equity ratio of 70, its cost of equity is 14.9 percent, and its after-tax

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A company is considering a new project. The company has a debt-equity ratio of 70, its cost of equity is 14.9 percent, and its after-tax cost of debt is 8.2 percent. The firm feels that the project is riskier than the company as a whole and that it should use an adjustment factor of +4 percent. What discount rate should the firm use for the project? 12.14% 13.14% 15.14% O 16.14% None of the above

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