The required return on the stock of Moe's Pizza is 10.6 percent and aftertax required return on the company's debt is 3.34 percent. The company's market value capital structure consists of 67 percent equity. The company is considering a new project that is less risky than current operations and it feels the risk adjustment factor is minus 1.7 percent. The tax rate is 40 percent. What is the required return for the new project?
+3
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The required return on the stock of Moe's Pizza is 10.6 percent and aftertax required return on the company's debt is 3.34 percent. The ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Home » Business » The required return on the stock of Moe's Pizza is 10.6 percent and aftertax required return on the company's debt is 3.34 percent. The company's market value capital structure consists of 67 percent equity.