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Albright Properties Inc. (API) has three divisions: Division Beta Proportion of Firm's Assets Property management 1.4 50% 1.9 40 Land resources Financial services 10 The leveraged beta for API is 1.6. API has a consolidated capital structure consisting of 50 percent debt and 50 percent equity. The Financial Services Division's capital structure is 70 percent debit and 30 percent equity. API is planning to finance new projects in that division with a capital structure of 80 percent debt and 20 percent equity. The risk-free rate is 10 percent, and the market risk premium is 9.5 percent. The pretax cost of debt to API is 17 percent. The tax rate is 40 percent. What discount rate should API apply to the cash flows from "new projects in the Financial Services Division? Round your answer to one decimal place. abook Albright Properties Inc. (API) has three divisions: Division Bota Proportion of Firm's Assets Property management 1.4 50% Land resource 1.9 Financial services The leveraged beta for API is 1.6. API has a consolidated capital structure consisting of 50 percent debt and 50 percent equity. The Financial Services Division's capital structure is 70 percent debt and 30 percent equity. API planning to finance new projects in that division with a capital structure of 80 percent debt and 20 percent equity. The riske-free rate is 10 percent, and the market risk premdum is 9.5 percent. The pretax cost of debt to AFT 17 percent. The tax rate is percent. What discount rate should API apply to the cash flows from "new" projects in the Financial Services Ovision? Round your answer to one decimal place