Assume that the project your client has chosen is a leveraged one. Your client informs you that 40% of the finance for the project will be debt at an interest of 18%. The project intends to pay dividends at a rate of 14%. What will be the cost of capital for the project if the project falls under a 30% tax bracket?

Answer rating: 100% (QA)

To find the cost of capital for a project we need to calculate the weighted average cost of capital ... View the full answer