Straighten Technologies has a cost of equity of 10.5 percent and aftertax cost of debt of 3.31 percent. The company's market value weight of equity is 66 percent. Straighten is evaluating a new project that is less risky than their normal projects. They believe the risk adjustment factor is minus 1.6 percent. The tax rate is 39 percent. What is the required return for the new project?

Multiple Choice

• 6.46%

• 8.06%

• 6.02%

• 9.22%

• 9.66%