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Wherewolf is considering a project that is more risky than the firm's current operations. Therefore, the required return for this project will be 5% higher
Wherewolf is considering a project that is more risky than the firm's current operations. Therefore, the required return for this project will be 5% higher than Wherewolfs cost of capital. Wherewolf has a cost of equity of 11.1% and a cost of debt of 8.5%. The debt-equity ratio is .79 and the tax rate is 28%. What is the cost of capital for this project?
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