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Type 3B: Here is some information about Southern California Winery: Beta of its common stock =2.0 Treasury bill rate =4% Market risk premium =7% Yield

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Type 3B: Here is some information about Southern California Winery: Beta of its common stock =2.0 Treasury bill rate =4% Market risk premium =7% Yield to maturity on its bond =6% Book value of its common stock =$300 million Market value of its common stock =$900 million Book value of its bond =$500 million Market value of its bond =$800 million same as the company's risk with an internal rate of return of Corporate tax rate =34% a. What is the company's wacc? b. If the company considers a normal project whose risk is about the

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