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INTERNATIONAL COST OF CAPITAL A firm with a corporate wide debt/equity ratio of 1:2, an after tax… 1 answer below » INTERNATIONAL COST OF CAPITAL A firm with a corporate wide debt/equity ratio of 1:2, an after tax cost of debt of 7%, and a cost of equity capital of 15% is interested in pursuing a foreign project. The debt capacity of the project is the same as for the company as a whole, but its systematic risk is such that the required return on equity is estimated to be about 12%. The after tax cost of debt is expected to remain at 7%. a. What is the project’s weighted average cost of capital? How does it compare with the parent’s WACC? b. If the project’s equity beta is 1.21, what is its unlevered beta? Jan 11 2016 06:43 PM