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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 marginal tax rate is 35%,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 1,then KT's equity cost of capital,rE,for this project is closest to:
Reflective Communication
An interactive communication process in which the receiver uses verbal “mirroring” to restate what the sender has said for optimal clarification by all parties.
Verbal "Mirror"
A communication technique where a speaker repeats or paraphrases what another person has said to confirm understanding or empathy.
Sterile Techniques
Methods employed to maintain sterility during medical procedures, including the use of sterilized instruments and gloves to prevent infection.
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