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Space Capital Corp. has 2 2 5 , 0 0 0 shares of stocks outstanding, and 1 0 , 0 0 0 bonds with 5
Space Capital Corp. has shares of stocks outstanding, and bonds with coupon rate semiannually paid par value $ each. The common stock currently sells for $ per share and has a beta of and the bonds have years to maturity and sell for of par value. The market risk premium is Tbills are yielding and the companys tax rate is If the company is evaluating a new investment project that has the same risk as the firms typical project, what rate should the firm use to discount the projects cash flows? Please express the value as percentages and keep two digits after the decimal point eg Note: if your answer is please just enter in the blank below.
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