QUESTION 4 1. A company plans to invest 4 million in an expansion project, financing it with 4 million of new bank loans costing 6%. Over the long run, the company plans to maintain its present capital structure of 70% equity and 30% debt. The current cost of equity is 12%. Assuming a tax rate of 19%, the correct discount rate to use for analysis of the expansion project is? CA. 9.9% B. 12.0% D. 18.0% E. 6.0%