You are an analyst at XYZ Co.You have been assigned to determine the weight average cost of capital (WACC) for this new project. XYZ Co., plans to maintain a target debt-to-equity ratio of 0.99. you learned the average beta is 0.96 and the industry's average debt-to-equity ratio is 0.75. The tax rate all companies is 27%.

If the risk free rate is 4.2%, the market risk premium is 6.2%, and XYZ Co. cost of debt is 6.96%, then what is the projects WACC?

What is the industry's unleverage beta?

What is the new division's leverage beta?

The project's cost of equity?

%

XYZ Co. weight of equity and weight of debt?

equity weight	debt weight
%	%

What is the project's WACC?

%