Question: ETM Corp. is evaluating a new project which has an unlevered beta of 1.1. The project will be financed with 40 percent debt with a

ETM Corp. is evaluating a new project which has an unlevered beta of 1.1. The project will be financed with 40 percent debt with a cost of 7 percent. The risk-free rate is 5 percent and the market risk premium is 8 percent. If ETM's tax rate is 30 percent, what is the project cost of capital?

10.2 percent
11.7 percent
12.7 percent
13.5 percent
17.9 percent

Answer is 12.7%. Could you please show me all the steps to get the answer

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