DDD Inc. is evaluating a project. The DDD intends to use 30% debt in funding the project. DDD identifies 5 comparable companies with the following equity betas and debt/equity ratios. While the comparable companies have varying marginal tax rates DDD's marginal tax rate is 32%. The current ten year treausy rate is 2.5% and the market return (Rm) is estimated to be about 8.5%. The yield on the company's corporate bonds is 4%