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Gnomes R Us is considering a new project. The company has a debt-equity ratio of .52. The company's cost of equity is 12 percent, and

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Gnomes R Us is considering a new project. The company has a debt-equity ratio of .52. The company's cost of equity is 12 percent, and the after-tax cost of debt is 6 percent. The firm feels that the project is riskier than the company as a whole and that it should use an adjustment factor of +5 percent. What is the WACC it should use for the project? 15.25% 12.079hit 14.95% 13.09%

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