The required return on the stock return of Moes pizza is 10.4 percent and the required return on the company's debt after tax is 3.28 percent. 65 percent of the company's market value capital structure consists of equity. The company is considering a new project with less risk than existing operations and considers the risk correction factor to be minus 1.5 percent. The tax rate is 35 percent. 

What is the required return for the new project?

Answer rating: 100% (QA)

To calculate the required return for the new project we can use the weighted average cost of capital ... View the full answer