rm A wants to invest in a new project, which will be in a new line of business.

To estimate discount rate for this project,

firm finds comparable firms with the following unlevered betas: 2 , 2.1 , and 2.2

The risk-free rate is 5% percent, and the market risk premium is 7% ;

The company has a tax rate of 33% ;

The project is financed with 35% debt at 8% borrowing rate.

. From comparable unlevered betas, find out corresponding levered beta for the project?

. What is WACC_____(percent) for this project?