ABC inc is a drug manufacturing company. It is considering a new project offering to supply food items. ABC recently raised $10,000,000 by issuing ten years bonds at the price of $995 for the $1,000 face value paying 8% (annual rate) coupon every six months. ABCs market value of equity is $5,000,000.

MNF is another drug manufacturing company. MNFs total debt is $8,000,000 an equity value is $5,000,000. MNFs equity beta is 0.95.

XYZ is a public company operating in the food supply industry. XYZs total debt is $12,000,000 an equity value is $10,000,000. XYZs equity beta is 1.1.

The expected return on a market portfolio is 10%, and the yield on 10-year T-bills is 4%.

The marginal tax rate is 30% for all three companies.

1) Calculate the asset beta of MNF and XYZ.

2) Calculate the beta and WACC applicable for the new project of ABC. (My problem is calculating WACC for ABC-it would be very helpful if you could solve the whole question)