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KT Enterprises is considering undertaking a new project.Based upon analysis of firms with similar projects,KT has determined that an unlevered cost of equity of 12% is suitable for their project.KT's corporate tax rate is 21%,its borrowing rate is 7%,and KT does not believe that its borrowing rate will change if the new project is accepted.
-If KT expects to maintain a debt to equity ratio for this project of .6 then KT's equity cost of capital,rE,for this project is closest to:
Uninvolved
A parenting or caregiving style characterized by a low level of responsiveness and communication, combined with limited emotional involvement or supervision.
Negligent
Failing to take proper care in doing something, leading to harm or injury to others.
Sexual Maturation
The process of acquiring sexual maturity and reaching reproductive capability.
Puberty
The developmental stage in humans and other primates marked by the onset of sexual maturity and physical growth.
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