Nalcoa Corp.is financing a project that is in the same industry as its current portfolio of projects.If Nalcoa has a beta of 1.5 and the expected market risk premium is 8% while the risk-free rate is 5% then what is the weighted average cost of capital for Nalcoa if it is,and plans to continue to be an all equity financed firm?
A) 9.5%
B) 13.0%
C) 17.0%
D) there is not enough information to calculate the WACC
Correct Answer:
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