You have been asked to calculate the WACC for a new project. The capital structure is 65% equity and 35% debt (i.e., D/(D+E) = 0.35). To get the cost of debt for the project you plan to use a an annual bond with the following characteristics: Price is $1,000, Coupon rate is 6%, face value is $1,000 and it has 8 years to maturity. To get the cost of equity for the factory you plan to use the pure play method and information from the following comparable firm: The comparable firms Beta (BL) is 1.25; its tax rate is 20%; and its D/E is 0.80. The T-bond rate is 2.00%, the market risk premium (MRP) is 5%, and the tax rate for your company is 25%. Answer the following:

What is the beta you would use in the CAPM to get the cost of equity for the project? Round your answer to two decimal places.

What is the pre-tax cost of debt, r_D? Put your answer in decimal form (not percent) and round to four decimal places (e.g., 0.0123)

What is the WACC? Put your answer in decimal form (not percent) and round to four decimal places (e.g., 0.0123)