fostation costs for the dest, preferred, and common stock and add them to the inkal investment cost. Becouse the investmest cest is increaved, the project's expected rate of return is reduced so it mary fot. meet the firm's hurde rate for acceptance of the project. The second appreach involives adjusting the cost of common equity as follows: Cont of equity from se* stack s4=FilnB1+R fostation costs for the dest, preferred, and common stock and add them to the inkal investment cost. Becouse the investmest cest is increaved, the project's expected rate of return is reduced so it mary fot. meet the firm's hurde rate for acceptance of the project. The second appreach involives adjusting the cost of common equity as follows: Cont of equity from se* stack s4=FilnB1+R