The required return on the stock of Moe's Pizza is $10\mathrm{.}8$ percent and aftertax required return on the company's debt is $3\mathrm{.}40$ percent. The company's market value capital structure consists of $69$ percent equity. The company is considering a new project that is less risky than current operations and it feels the risk adjustment factor is minus $1\mathrm{.}9$ percent. The tax rate is $25$ percent. What is the required return for the new project?

Multiple Choice

$6\mathrm{.}34\%$

$10\mathrm{.}14\%$

$8\mathrm{.}51\%$

$6\mathrm{.}61\%$

$10\mathrm{.}41\%$