The total market value of the common stock of the Okefenokee Real Estate Company is $$8\mathrm{.}5$ million, and the total value of its debt is $$6\mathrm{.}3$ million. The treasurer

estimates that the beta of the stock is currently $1\mathrm{.}4$ and that the expected risk premium on the market is $7\%.$ The Treasury bill rate is $3\%.$ Assume for simplicity that

Okefenokee debt is risk$-$free and the company does not pay tax.

a$.$ What is the required return on Okefenokee stock?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.

b$.$ Estimate the company cost of capital.

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.

c$.$ What is the discount rate for an expansion of the company's present business?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.

d$.$ Suppose the company wants to diversify into the manufacture of rose$-$colored spectacles. The beta of unleveraged optical manufacturers is $0\mathrm{.}90.$ Estimate the

required return on Okefenokee's new venture.

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.