estimated at .87? Multiple Choice 9.67% 11.67% 11.08% 9.44% 10.36%

Buster's target debt-to-equity ratio is .65, its cost of equity is 137 percent, and its beta is _9_ The after-tax cost of debt is 58 percent, the tax rate is 34 percent, and the risk-free rate is 2.3 percent. What discount rate should be assigned to a new project the firm is considering if the project's beta is estimated at .87? Multiple Choice O O O O O 967% 11.6786 11.08% 9.44% 1036%