Finishing the sequence of 3 project-specific WACC questions

Finance Nov 18, 2020

Finishing the sequence of 3 project-specific WACC questions... (again you're working as a financial analyst for Tesla).

Assume your calculated re for the project is 9.8%. The CFO also tells you that company's rd equals 3.7%. Remembering that the project is financed by half debt and half equity, and that the company tax rate is 20%, what is the WACC for the project? Answer should include four digits to the right of the decimal point.

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