What unleveraged discount rate will be used to value

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Problem 1: Mondo Cult is considering acquiring pulpless.com. Pulpless is currently ?nanced with 0.28% debt at an interest rate of 0.13%. If the acquisition takes place the debt level will continue at the 0.28% target level and the interest rate will remain the same. Pulpless's ore-merger beta is 1.9, and its tax rate is 0.34%. The risk-free rate is 0.04% and the market risk premium is 0.02%. What unleveraged discount rate will be used to value pulpless.com?

Reference no: EM132950601

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