Sorry the order of the images are messed up, please read the info before solving part (a) thanks!!

TT has no traded debt, but is paying 6% in interest on $2 billion of existing bank loans. In addition, TT has 1 billion shares outstanding traded at a price of S4 each, with a beta of 1.2. The expected market portfolio return is 12%, and the risk-free return is 4%. Interestingly, manufacturers of digital audio players have similar capital structures to those ofportable gaming consoles. The corporate tax rate is 35%. (a) Calculate and justify a discount rate for the portable gaming console project under consideration. (8 marks)