b. How can Glencore structure its financing to reduce these risks? c. How can Glencore use financing to add value to this project? ROBLEMS 15.1 A firm with a corporate-wide debt-to-equity ratio of 1:3, an after-tax cost of debt of 6%, and a cost of equity capital of 12% is interested in pursuing a foreign project. The debt capacity of the project is the same as for the company as a whole, but its systematic risk is such that the required return on equity is estimated to be about 10%. The after-tax cost of debt is expected to remain at 6%. What is the project's weighted average cost of capital? How does it compare with the parent's WACC