McArthur Inc. has a stock price of $20 per share with 20 million shares outstanding. It also has $200 million in debt outstanding. McArthur's equity beta is 1.2. The risk-free rate is 3%, and the market risk premium is 5%. McArthur's debt cost of capital is 5%. Corporate tax is 40%. (Keep two digits if the answer is not an integer).

What is McArthur's cost of equity?

What is McArthur's after-tax debt cost of capital?

What is McArthur's weight of equity?

What is McArthur's WACC?

McArthur decides to implement a new project with an estimated IRR of 9%. The project is fully financed by equity and has a project beta of 1.5. If the CFO uses the company's WACC to determine the acceptance/rejection of the project, will he/she reach the right conclusion? Why?