The debt-equity ratio is 65 and the tax rate is 36 percent


Brewster's is considering a project that is equally as risky as the firm's current operations. The firm has cost of equity of 13.7 percent and a pre-tax cost of debt of 8.4 percent. The debt-equity ratio is .65 and the tax rate is 36 percent. What is the cost of capital for theis project?

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Finance Basics: The debt-equity ratio is 65 and the tax rate is 36 percent
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