A private firm with investment in many industries is considering investing in the fast-food industry. Looking at data on publicly traded fast food companies, an analyst discovers the following information for McDonalds and Wendys International. Equity beta D/E McDonalds 0.90 0.60 Wendys 0.70 0.45 In addition, the analyst has the following information from financial markets: 1. The risk-free rate of interest is 3%. 2. The market risk premium is 6%. 3. The corporate tax rate is 20% for all firms. 4. The project will be financed with 40% debt and 60% equity. 5. The private company can borrow long-term debt at 6% interest. Calculate the discount rate for an investment in the fast-food business. (