Question: Tim identified a comparable firm for a new division you are heading up. The comparable has an expected return on its equity of 8.4% and

Tim identified a comparable firm for a new division you are heading up. The comparable has an expected return on its equity of 8.4% and its debt has a yield of 3.1%. The market value of the comparables equity and debt are $30B and $4B, respectively. What is the appropriate discount rate to use for projects in Tim's divisions

Don't use excel. Please show all work.

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