A firm's equity beta is 1.2 and its debt is risk free. Given a 0.7 debt to equity ratio, what is the firm's asset beta? 0.0 0.7 1.2 1.0 1.1 QUESTION 11 You want to estimate the appropriate discount rate for a new project. For this, you find that there is a comparable firm ABC being traded on financial markets with the following data: debt-equity ratio 1.00, and equity beta 1.5. The current T.Bill rate is 4percent and the market risk premium is 8 percent. Assume that the debt of firm ABC is risk-free. What is the appropriate discount rate for the project? 8 percent 10 percent 12 percent 14 percent O 16 percent