Question: A firm has $ 5 4 billion in equity, $ 5 8 billion in debt, and a tax rate of 2 1 % . The

A firm has $54 billion in equity, $58 billion in debt, and a tax rate of 21%. The pre-tax cost of debt and equity are 1.9%. and 9.7%., respectively. What discount rate should it use for a typical project?
4%
8%
5%
9%

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