FINA Corps cost of equity is 12%. The cost of debt is 3%. Tax rate is 20%. FINA has been focusing on producing auto parts. Now it is considering starting a new business in kitchen appliances. The following three firms also produce kitchen appliances. Firm A is a competitor of FINA in auto parts. Firm A also has a division in kitchen appliances. Firm B is producing kitchen appliances and all kinds of furniture. Firm C is in the kitchen appliances business only. The WACC, asset value, cost of debt, tax rates, and D/E ratios of the three firms are given in the following table. The target D/E ratio of the new business is 0.4. What is the WACC of FINAs new business in kitchen appliances?

Please do it correctly using Pureplays and WACC to find Re(old) then to find average Ru then use Ru to find Re(new) then to find new WACC. Please dont answer if you are not sure how to do it, too many people answer wrong. Thank you

	WACC	D/E	Rd	Tax Rate
A	15%	0.5	5%	21%
B	12%	0.6	4%	20%
C	14%	0.25	3%	20%