FIERA CO. IS EVALUATING A NEW PROJECT THAT COST $45,000. FINANCED USING 40% DEBT & 60% EQUITY. THE FIRMS STOCKHOLDERS REQUIRED RATE OF RETURN OF 18.36% AND ITS BONDHOLDERS EXPECT 10.86% ROR. THE PROJECT IS EXPECTED TO GENERATE ANNUAL CASH FLOWS OF $13,000 BEFORE TAXES FOR THE NEXT 2 DECADE. FIERA CORPORATION IS IN THE 36% TAX BRACKET.,,***QUESTION:,USING THE MODIGLIANI & MILLER PRROPOSITION II, DETERMINE THE REQUIRED RETURN ON UNLEVERED EQUITY. (NEED TO SEE CALCULATIONS)
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