A comparable project is financed with 22% debt and the remainder equity. Its equity has an expected return of 9% and its debt has an expected return of 4.6%.

What is an appropriate required return benchmark for your project? Give your answer in percentage to the closest basis point.

and please answer:

Estimate an appropriate cost of capital benchmark for a long-term safe project based on the following data:

YTM on T-bills = 2.9% YTM on T-bonds = 3.8%

historical arithmetic equity premium over T-bills = 8.3% historical arithmetic equity premium over T-bonds = 6.1% historical geometric equity premium over T-bills = 6.4% historical geometric equity premium over T-bonds = 7.4%

Give your answer in percentage to the nearest 0.1 percentage point.