Question: Finally, you managed to finance the project with $700 debt and $300 equity. The interest rate on debt is 7%. The return on the market

Finally, you managed to finance the project with $700 debt and $300 equity. The interest rate on debt is 7%. The return on the market portfolio is 15%. The covariance between this companys project and the market portfolio is 0.06. The market portfolio standard deviation is 20%. The risk free rate is 2%. What is the WACC of the project? Assume taxes are 40%

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