The equity beta of Guiding Co is $0\mathrm{.}9,$ and the company has issued $20$ million ordinary shares. The market value of each ordinary share is $$750.$ The company has $7\%$ bonds with a nominal value of $$100$ per bond, which will be redeemed at the nominal value in seven years' time. The bonds have a total nominal value of $$16$ million. Interest on the bonds has just been paid, and the current market value of each bond is $$107\mathrm{.}14.$ Guiding Co plans to invest in a project different from its existing business operations and has identified a company in the same business area as the project, Target Co$.$ The equity beta of Target Co is $12,$ and the company has an equity market value of $$54$ million. The market value of Target Co's debt is $$12$ million. The risk$-$free rate of return is $4\%$ per year, and the average return on the stock market is $11\%$ per year. Both companies pay corporation tax at a rate of $20\%$ per year.

a$)$ Calculate Guiding Co$$s current weighted average cost of capital.

b$)$ Calculate a cost of equity that could be used in appraising the new project.

c$)$ Explain the difference between systematic and unsystematic risk regarding the portfolio theory and the capital asset pricing model.

d$)$ Discuss the differences between weak form, semi$-$ strong form, and strong form capital market efficiency, and discuss the significance of the efficient market hypothesis $($EMH$)$ for the financial manager.