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Hello! I'm reviewing for our exam, please help me find out how to answer it. Please show the complete solution. Thanks! ETM Corp, is evaluating

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Hello! I'm reviewing for our exam, please help me find out how to answer it. Please show the complete solution. Thanks!

ETM Corp, is evaluating a new project which has an unlevered beta of 1.1. The project will be financed with 40 percent debt with a cost of 7 percent. The risk-free rate is 5 percent, and the market risk premium is 8 percent. If ETM's tax rate is 30 percent, what is the project's cost of capital? Multiple Choice 13.50 percent 17.98 percent 12.76 percent 10.24 percent

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