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Zoombie Brewery is considering a project with estimated operating income of $40M per year. The project's unlevered cost of capital is 9.9%, the cost of
Zoombie Brewery is considering a project with estimated operating income of $40M per year. The project's unlevered cost of capital is 9.9%, the cost of debt is 7.9%, the debt-equity ratio is 1.9, and the tax rate is 40%. What is the relevant cost of capital if the APV method is used?" 7.9% 11.2% 7.6% 7.5% 9.9%
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