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Suppose you are financing a project that has a total NINV of $250,000. You are going to finance with 40% debt and 60% equity. The

Suppose you are financing a project that has a total NINV of $250,000. You are going to finance with 40% debt and 60% equity. The cost of the equity is 11% and the firm has a tax rate of 21%. The WACC is 8.5%. Given this, what is the before-tax cost of debt? a. 5% b. 9% c. 6% d. 3%

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