Easyjetter has WACC of 10.9% and cost of equity capital of 15%. Easyjetter is considering the "BOMBAYFLY" project. Kiteglider is a company with operations which are similar to the "BOMBAYFLY" project and Kiteglider has WACC of 12%. Easyjetter is less efficient than Kiteglider and thus decides to add an adjustment of +1.5% to the "BOMBAYFLY" project's discount rate. Based on the given information, what is the discount rate for the "BOMBAYFLY" project?

Answer rating: 100% (QA)

Cost of debt WACC Weight of equity x Cost of equity Co... View the full answer