3) 17 Points) A firm has a beta of 1.2. The firms return on equity is 15%. The market risk premium is 8%. The firm's capital structure is 60% debt, and 40% equity. The weighted average cost of capital is 10%. The cost of the firm's debt is equal to the risk-free rate +2%. Answer the following questions a) 11 Point Calculate the implied risk-free rate of return. b) 13 Points Calculate the corporate tax rate. e) 13 Points i. 12 Points) For a large conglomerate fimm with many diverse lines of business, explain why it may not be correct to use the average cost of capital for all investment projects when discounting cash flows. ii. 11 Point Ifa fimm were to use the average cost of capital for all investment projects, state the systematic investment decision error that the firm would likely make for each of . Good low-risk projects (such as systems upgrades and enhancements) Poor high-risk projects (such as new lines of business and speculative ventures)