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A company requires a project to be 60% financed through the issuance of debt at a cost of 10% and the issuance of stock at
A company requires a project to be 60% financed through the issuance of debt at a cost of 10% and the issuance of stock at a cost of 20% for the remaining 40% cost of the project. The company's marginal income tax rate is 30%. Which of the following rates should the company use for capital budgeting purposes? A. 15.0% B. 14.8% C. 14.0% D. 12.2%
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