Buy Inc., a house appliance manufacturer, is considering investing (buying all the assets) of a local ice cream chain named "2-pops" a privately-owned firm (Ice cream company). Buy has been following a stable (target) policy of financing its assets with 30% debt a level that allows the company to borrow at 7%. Buy's stock beta is 1.50. The risk- free rate is 2% and the expected market retum is 14%. The corporate tax rate for all firms is 30%. The finance group of Buy has compiled the following list of companies for you (unfortunately, no data was collected on the borrowing rates of each company. Also, the finance group wasn't sure what you would be doing with this so they collected information on as many different companies as they could). Company Common Stock beta Terry's pops (Ice cream company) 0.80 Theirtag (house appliance industry) 1.10 B&Kmore (house appliance industry) 1.30 Georgia Power (Utility) 0.85 Ebay (E-commerce) 1.80 Debt-assets ratio 0.30 0.05 0.45 0.85 0.10 What is the discounting rate to use for this project (buying all the assets) if the assets of the project will be financed with 40% debt, in which case the borrowing rate is 10%? Do not enter the % symbol; use two decimals. For examples if you obtain 6.537% then enter 6.54; if you obtain 0.07 then enter 7.00