Calculate the cost of capital for a project with the following characteristics.
The total amount required for the project is 14.5 million dollars.
A loan for 2.5 million will be requested, at an interest rate of 7.85 percent with 2 payments per year, interest compounded at every payment
A bond issue for 3.9 million will be open, paying a bond rate of 14.11 percent with 2 payments per year.
The remaining amount will be financed by issuing common stock.
The dividends paid are 9.3 and the average price of the stock is 85.02
The applicable tax rate is 38 percent