The of debt is ernal rate of (10 points) Blue Dolphin Industrial has a current and target capital structure of 65% common uity and 35% debt. The company's beta is 1.10 and their current marginal tax rate is 39% he risk free rate is 4% and the expected return on the market is 12%. The company's after tax cost of debt is 6%. They are evaluating an investment in a totally new line of business and it has an expected internal rate of return of 15%. Since the company's risk profile is not appropriate for this new line of business, the company has adopted the "pure play" method to analyze the project. The average beta of 3 companies in a similar line of business as the new project is 1.6 and their average capit and 75% equity. These companies have an average marginal tax rate of 35%. Should this project be accepted? file is not app the project. average