Fun toys inc is considering a new project the company has a, Ask an Expert

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Fun Toys Inc is considering a new project. The company has a debt equity ratio of 0.65 and a cost of equity of 13.2 percent. The aftertax cost of debt is 5.1 percent. Fun Toys 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 that should be used for the project?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92749622

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