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Firm A wants to invest in a new project, which will be financed with 45% debt at 8% interest rate. The project is in a

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Firm A wants to invest in a new project, which will be financed with 45% debt at 8% interest rate. The project is in a new line of business, which differs from the main operation of the firm. There is only one firm B in the new line of business, which has 25 debt cost of debt of 6% and cost of Equity is 27.0%. Tax rate for both firms is 35% From firm B's information, using MM proposition II, find out its all-equity version cost of equity? Using MM proposition Il and WACC, find out the discount rate for the firm A's project. (for all parts above, DO NOT ROUND intermediate steps ONLY round and format after you finish all parts. format your numerical answer into percent, round into ONE decimal, for example, if your WACC 0.1234, convetto 12.3 percent, enter 12.3 only)

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