Problem:
Brewster's is considering a project that is equally as risky as the firm's current operations. The firm has cost of equity of 13.7 percent and a pre-tax cost of debt of 8.4 percent. The debt-equity ratio is .65 and the tax rate is 36 percent.
Required:
Question: What is the cost of capital for theis project?
Note: Please answer in proper manner and show all computations