Hula Enterprises is considering a new project to produce solar water heaters. The finance manager wishes to find an appropriate risk adjusted discount rate for the project. The (equity) beta of Hot Water, a firm currently producing solar water heaters, is 1.1. Hot Water has a debt to total value ratio of 0.3. The expected return on the market is 0.13, and the riskfree rate is 0.03. Suppose the corporate tax rate is 33 percent. Assume that debt is riskless throughout this problem. (Round your answers to 2 decimal places. (e.g., 0.16))

a.	The expected return on the unlevered equity (return on asset, R0) for the solar water heater project is %.
b.	If Hula is an equity financed firm, the weighted average cost of capital for the project is %.