The required return on the stock of Moe's Pizza is $12\mathrm{.}1$ percent and aftertax required return on the company's debt is $3\mathrm{.}79$ percent. The company's market value capital structure consists of $73$ 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 $2\mathrm{.}2$ percent. The tax rate is $40$ percent. What is the required return for the new project?

Multiple Choice

$7\mathrm{.}66\%$

$11\mathrm{.}65\%$

$7\mathrm{.}25\%$

$12\mathrm{.}06\%$

$9\mathrm{.}86\%$