18. Adjusted WACC. Thorpe and Company is currently an all-equity firm. It has three million shares selling for $25 per share. Its beta is 1.1, and the current risk-free rate is 2.1%. The expected return on the market for the coming year is 9.3%. Thorpe will sell corporate bonds for 25,000,000 and retire common stock with the proceeds. The bonds are twenty-year semiannual bonds with a 7.8% coupon rate and $1,000 par value. The bonds are currently selling for $970.53 per bond. When the bonds sell, the company%u2019s beta will increase to 1.5. What was Thorpe and Company%u2019s WACC before the bond sale? What is Thorpe and Company%u2019s adjusted WACC after bond sale if the corporate tax rate is 40%? Hint: The weight of equity before selling the bonds is 100% NOTE: show all work

22. Beta of a project. Vespucci is adding a project to the company portfolio and has the following information: the expected market return is 16.5%, the risk-free rate is 3.7%, and the expected return on the new project is 14.6%. What is the project%u2019s beta? NOTE: Show all work