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Alpha Industries uses the subjective approach to assign discount rates to projects. For a particular project, the subjective adjustment is +2 percent. The firm has

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Alpha Industries uses the subjective approach to assign discount rates to projects. For a particular project, the subjective adjustment is +2 percent. The firm has a pretax cost of debt of 8.8 percent and a cost of equity of 13.6 percent. The debt- equity ratio is 0.6 and the tax rate is 32 percent. Whak discount rate should Alpha Industries use for this project

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