Silo Mills is an all-equity financed firm that has a beta of 1.18 and a cost of equity of 12.2 percent. The risk-free rate of return is 2.9 percent. The firm is currently considering a project that has a beta of 1.03 and a project life of six years. What discount rate should be assigned to this project?
a. 11.33 percentb. 11.02 percentc. 11.84 percentd. 10.62 percente. 12.09 percent
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