The firm's cost of equity capital is 6.2%, the market value of the firm's equity is $5 million, the firm's cost of debt capital is 3%, and the market value of debt is $2.5 million. This project is 25% less risky than the firm's average operations. The riskless rate of return is 1.5% and the market return is 6%. 

What is the project's required rate of return?

Answer rating: 100% (QA)

To calculate the projects required rate of return you can use the weighted average cost of capital W... View the full answer