Ashland gas and Electric (AG&E) a utility company, is financed with 60% debt and 40% equity. Its required return on equity is 9 and on debitish. Its tax rate of 40M. The company is considering branching into the new business of energy derivative tradirve, whorse risk profile is quite different from the power supply business. Its current WACC is not suitable for the new business. It employs as a surrogate an energy derivative "pure play company with the following information: RE-16M: RD -9.60M: Debt weight 20, Tax rate 35. What parameter and what value would AG&E borrow from the surrogate to apply to its new division? The return on equity of 16% The return on assets of 15.10% The return on debt of 9.60% The WACC of 14.05%