?? Financial accounting question Pacific Electronics is evaluating a new project with risk characteristics similarto its existing operations. The company has the following financialinformation:⚫ Cost of equity = 12.5%⚫ Cost of debt = 8%⚫•Tax rate = 30%⚫ Debt-to-equity ratio = 0.6What is the appropriate discount rate (WACC) for this project?a) 9.25%b) 10.15%c) 10.85%d) 11.45%

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Answered: Pacific Electronics is evaluating a new…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter11: Capital Budgeting And Risk

Section: Chapter Questions

Problem 6P

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