Question: 5 5 5 CasaSi Inc., is considering a scale - enhancing project. The market value of the firm s debt is $ 3 0 0

555CasaSi Inc., is considering a scale-enhancing project. The market value of the firms debt is $300 million and the market value of the firms equity is $400 million. The debt is considered risk-free. The corporate tax rate is 20%. Regression analysis indicates that the beta of the firms equity is 1.4. The risk-free rate is 3% and the market risk premium is 11%.
What would the projects discount rate be in the hypothetical case that CasaSi Inc., is all equity?
Do not enter the % symbol; use two decimals. For example, if you obtain 6.537% then enter 6.54; if you obtain 0.07 then enter 7.00

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