Fiera co Is evaluating a new project that cost $45,000 Financed using 40% debt & 60% equity. The firms stockholders required rate of return of 18.36% and its bondholders expect 10.86% ror. The project is expected to generate annual cash flows of $13,000 before taxes for the next 2 decade. Fiera Corporation is in the 36% tax bracket.
Using the Modigliani & miller proposition ii, determine the required return on unlevered equity.