What is the wacc it should use for the project

Reference no: EM13303443

Calculating the WACC. Gnomes R Us is considering a new project. The company has a debt-equity ratio of .80. The company's cost of equity is 14.5 percent, and the aftertax cost of debt is 7.8 percent. The firm feels that the project is riskier than the company as a whole and that it should use an adjustment factor of + 3 percent. What is the WACC it should use for the project?

Reference no: EM13303443

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