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A firm is considering an average - risk project with an IRR of 8 % . The firm's cost of debt ( KD ) is
A firm is considering an averagerisk project with an IRR of The firm's cost of debt KD is its cost of equity KE is and its tax rate t is The target debt ratio DDE for the project, in market values, is The firm should
reject the project regardless of the financing method
accept the project regardless of the financing method
accept the project only if it can be financed entirely with equity
accept the project only if it can be financed entirely with debt
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