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Unicorn Limited has finalised the planning of a project that requires an investment of $120 million. In considering its financing options, Unicorn Limited can access
Unicorn Limited has finalised the planning of a project that requires an investment of $120 million. In considering its financing options, Unicorn Limited can access debt finance at an incremental borrowing rate of 9\% per annum. Economic modelling indicates that Unicorn Limited's shareholders expect a minimum return of 14%. The corporate tax rate is 30%. Required Calculate, to two decimal places, Unicorn Limited's weighted average cost of capital (WACC) if it were to finance 58% of this project using debt finance
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