A firm is considering a project that is virtually risk-free. The company has a beta of 1.3 and a debt-equity ratio of 0.4. The appropriate discount rate to use in analyzing this project is: Select one: a. The firm's latest WACC. b. An adjusted WACC based on a beta of 1.0. c. The U.S. Treasury bill rate. d. Zero. e. The cost of equity capital.
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