Your company, Magnocompulsion Inc., is considering starting a division that makes a new kind of electric motor for electric cars. Magnocompulsion has spent $20,000,000 on R&D and believes that the new electric motor will be more efficient and cost less to build. The R&D cannot be sold because it is specific to Magnocompulsion A large plant that Magnocompulsion owns would be used by the project. The plant could otherwise be sola today for $42,000,000 net of taxes. Your company's debt ratio will be 78%. The marginal corporate tax rate is 21%.

There is a publicly traded company called Eleccentric Inc. that you believe is most comparable to your project. They have a debt ratio of 42%. The yield to maturity on their debt is 7.73%. With a debt ratio of 78%, you think that the yield to maturity on their debt would be 10.10%. They also have a marginal tax rate of 21%. Their stock beta is 1.6. The expected return on the market is 9.21%, and the risk-free rate of interest is 2.21%.

what is:

the required return on stock for Eleccentric?

the unlevered and required return on the stock for Eleccentric?

the required return of stock for Magnocompulsion?

the WACC for Magnocompulsion?

please show work!