Question: 28 of 30 Status: Unanswered User Time Remaining 38 minutes 24 seconds Betty Fr ime Value Tables DOZ Telecom is considering a project for the coming year that will cost $50 million. DOZ plans to use the following combination of debt and equity to finance the investment $15 million of 20-year bonds at a price of $101, with a coupon rate of 8%, and flotation costs of 2% of par . Use $35 million of funds generated from earnings The equity market is expected to earn 12% U S Treasury bonds are currently yielding 5% The beta coefficient for DQZ is estimated to be 60 DQZ is subject to an effective corporate income tax rate of 40% The capital asset pricing model (CAPM) computes the expected return on a security by adding the risk free rate of return to the incremental yield of the expected market return, which is adjusted by the company's beta. Compute DOZ's expected rate of return OA. B. . OD. 7.20% 12.20% 1200% 9.20% Directions: Select the best answer Previous Next Review Items Mark Ei