The total market value of the common stock of the Okefenokee Real Estate Company is $9 million, and the total value of its debt is $5.8 million. The treasurer estimates that the beta of the stock is currently 17 and that the expected risk premium on the market is 8%. The Treasury bill rate is 4%. 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? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. Estimate the company cost of capital. (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? (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 0.90. Estimate the required return on Okefenokee's new venture. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) % a. Required return % b. Cost of capital % c. Discount rate % d. Required return