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A firm is considering an average-risk project with an IRR of 6%. The firm's cost of debt (KD) is 5%, its cost of equity (KE)

A firm is considering an average-risk project with an IRR of 6%. The firm's cost of debt (KD) is 5%, its cost of equity (KE) is 12%, and its tax rate (t) is 21%. The target debt ratio (D/(D+E)) for the project, in market values, is 0.6. The firm should: Group of answer choices accept the project only if it can be completely financed with debt accept the project regardless of the financing method accept the project only if it can be completely financed with equity reject the project regardless of the financing method

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