1.DEF is a private company for which we don't observe stock prices.Find the required return on assets and WACC for DEF Corporation (using comparable firms' betas) based on the information below.Calculate Ra and WACC using both the asset beta approach and by averaging the cost of debt and cost of equity.

Market risk premium = 6%

Current long-term treasury rate = 5%

Comparable firm #1's debt ratio (D/V) = 50%

Comparable firm #1's equity (levered) beta = 1.2

Comparable firm #1's debt beta = 0.3

Comparable firm #2's debt ratio (D/V) =35%

Comparable firm #2's equity beta = 0.8

Comparable firm #2's debt beta = 0.25

DEF Corporation's debt ratio (D/V) = 20%

DEF Corporation's debt beta = 0.2

DEF Corporation's tax rate = 30%