Rapid Growth Bank Vault company wants to enter the automated bank teller business. It has identified a pure play company, the Apex Machine Company, that produces only automated teller equipment. The beta of that company is 1.63, and the company has a debt/equity ratio of 0.75. Rapid Growth has a debt/equity ratio of 0.46, and the yield to maturity of the bonds it has issued is 6.22%. Both companies face a corporate tax rate of 35%. The risk-free rate is 1.25%, and the expected return on the market portfolio is 12.37%.

a. What is an appropriate beta for the new automated bank teller business of Rapid Growth? Round the beta to two decimal places (the usual practice).

b. What is the appropriate WACC? State your final answer in percent, rounded to 2 decimal places.

c. If the flotation costs of debt are 5.18% and the flotation costs of common stock are 9.43%, what is the adjusted initial outlay for a project that has an unadjusted (not counting flotation costs) initial outlay of $350,000? Round your final answer to the nearest cent.