Southern Discomfort, Inc. makes soda bottles and is considering diversifying its business by purchasing LuvPet, Inc., a company that makes pet food. Souther's bota is 185, and the beta of LuvPot 0.98. The market risk premium is 15.10%, and the Treasury biliyold is 1.20%. LuvPetis projected to produce cash flows of $35 million in perpetuity a What is the appropriate discount rate for valuing LuvPet? (Enter your answer as a percentage rounded to two decimal places.) Discount rate b. What is the estimated value of the LuvPet purchase? (Enter your answers in ons rounded to two decimal places Luvfet value million N