Nero Violins has the following capital structure: Total Market Bata millions) 0107 Debt Preferred stock Common stock 27 1.27 47 306 a. What is the firm's asset beta? (Hint: What is the beta of a portfolio of all the firm's securities?) (Do not round intermediate calculations. Round your answer to 3 decimal places.) Asset beta b. Assume hat he C M correct. V hat discount rate should Nero set or investments hat expand the scale ofits operations without changing its asset beta? Assume a nsk-free interest rate of 4% and a market risk premium o 5% o not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal placos.) Discount rate