Your firm is planning to invest in a new electrostatic power generation system. Electrostat Inc is a firm that specializes in business. Electrostat has a stock price of $25 per share with 16 million shares outstanding. Electrostat's equity beta is 1.18. It also has $220 million in debt outstanding (Rated B). If the risk-free rate is 2%, and the market risk premium is 6%,

A) Estimate asset Beta for Electrosat Inc (and your project)

B) Estimate the cost of capital for your project if you plan to finance it with 60% equity and 40% AA-rated debt yielding 3%. Assume that the taxt rate is 35%