Gondorr Inc. has three subsidiaries Shiree, Rohann and Mordorr. Gondor is an unlevered firm (its subsidiaries are also unlevered). Rohann contributes 50% to the market value while Mordor contributes 30%. Gondorr's asset beta is 1 while Rohann and Mordorr have asset betas of 1.2 and 1.1 respectively. The risk-free rate is 5% and market risk premium is 10%. If you want to purchase Shiree alone, at what rate would you discount Shiree's cash flows? (4 marks)