Question: 2 2 2 2 2 2 GiGio Inc. has a new project available that requires an initial investment of $ 8 , 0 0 0

222222GiGio Inc. has a new project available that requires an initial investment of $8,000. The project will provide unlevered cash flows (UCF) of $1,000 a year forever. The company will finance the project with a debt-equity ratio of 0.50. The company's bonds have a YTM of 9%. The companies with operations comparable to this project have unlevered betas of 1.02,1.80, and 0.76. The risk-free rate is 2.0% and the expected market return is 15.0%. The tax rate is 30%.
What is the levered equity equity for the project?

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