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Alpha Industries uses the subjective approach to assign discount rates to projects. For a particular project, the subjective adjustment is +5.5 percent. The firm has
Alpha Industries uses the subjective approach to assign discount rates to projects. For a particular project, the subjective adjustment is +5.5 percent. The firm has a pretax cost of debt of 10.2 percent and a cost of equity of 12.9 percent. The debt equity ratio is 0.25 and the tax rate is 22 percent. What discount rate should Alpha Industries use for this project? Discount rate = Allowed attempts: 3 Check
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