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The Rare Find Co . has the following information: Debt outstanding: $ 1 , 5 0 0 million The before - tax cost of debt:

The Rare Find Co. has the following information:
Debt outstanding: $1,500 million
The before-tax cost of debt: 6.5%
Market cap: $4,400 million
Cost of common stock: 12%
Tax rate: 21%
Rare Find is evaluating a project with the following information:
Over the next five years, EBIT will equal 153 million each year
An investment of $100 million is required in net working capital at the beginning of the project, which will be recovered at the end.
The equipment cost will be $175 million, depreciated using the straight-line method to zero over the project's life, with no salvage value.
The project requires an additional 2% risk premium above the firm's WACC.
a.) Calculate the weight of debt for the firm. (Calculate the after-tax cost of debt for the firm. (Enter percentages as decimals and round to 4 decimals)Enter percentages as decimals and round to 4 decimals)
b.) Calculate the after-tax cost of debt for the firm. (Enter percentages as decimals and Calculate the WACC for the firm. (Enter percentages as decimals and round to 4 decimals)round to 4 decimals)
c.) Calculate the WACC for the firm. (Enter percentages as decimals and round to 4 decimals)
d.) Calculate the risk-adjusted WACC for the firm. (Enter percentages as decimals and round to 4 decimals)

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