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Questions 1 . Explain how you would estimate the cost of capital for a new investment project if its risk is different from the rest

Questions 1 . Explain how you would estimate the cost of capital for a new investment project if its risk is different from the rest of the company? How would you estimate the overall cost of capital for a project when the company has debt in its capital structure? Explain how you could estimate the cost of debt given that the companys debt is publicly held.

( 15 marks)

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