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Decker's is a chain of furniture retail stores . Furniture Fashions is a furniture maker and a supplier to Decker's. Decker's has a beta of

Decker's is a chain of furniture retail stores. Furniture Fashions is a furniture maker and a supplier to Decker's. Decker's has a beta of 1.41 as compared to Furniture Fashion's beta of 1.15. Deckers has a cost of equity of 14.75 percent. The risk-free rate of return is 3.4 percent. What discount rate should Decker's use if it considers a project that involves the manufacturing of furniture?

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