World-Wide Enterprises (WWE) is planning to enter into a new line of business (widget industry) American Widgets (AW) is a firm in the widget industry with an estimated beta of 1.5. WWE has a D/E of 1/3, AW has a D/E of 2/3. Both D/E's are constant. Borrowing rate for WWE is 10 % Borrowing rate for AW is 12% Given: Market risk premium = 8.5 %, R = 8%, T= 40% What is the appropriate discount rate for WWE to use for its widget venture?