Practice 1: Mobile Phones Telecommunications conglomerate AMCI wants to produce cell phones. It will use 100% equity financing Another firm, Nokorola, only produces mobile phones The market value of Nokorola's equity is E = $1.2M, with a beta of 1.2 The book value of Nokorola's debt is D = $0.4M, and it has a beta of 4 The risk-free rate is 10% and the average return on the market is 15% What discount rate is appropriate for AMCI's mobile phone project