Problem $13-11$ Project Discount Rate $($LO$2)$ The total market value

of the equity of Okefenokee Condos is $$14$ million, and the total

value of its debt is $$6$ million. The treasurer estimates that the

beta of the stock currently is $0\mathrm{.}6$ and that the expected risk

premium on the market is $10\%.$ The Treasury bill rate is $6\%,$ and

investors believe that Okefenokee's debt is essentially free of

default risk.a$.$ What is the required rate of return on Okefenokee stock? $($Do

not round intermediate calculations. Enter your answer as a whole

percent.$)$b$.$ Estimate the WACC assuming a tax rate of $21\%.($Do not round

intermediate calculations. Enter your answer as a percent rounded

to $2$ decimal places.$)$c$.$ Estimate the discount rate for an expansion of the company$$s

present business. $($Do not round intermediate calculations. Enter

your answer as a percent rounded to $2$ decimal places.$)$d$.$ Suppose the company wants to diversify into the manufacture

of rose$-$colored glasses. The beta of optical manufacturers with no

debt outstanding is $\mathrm{.}8.$ What is the required rate of return on

Okefenokee$$s new venture? $($You should assume that the risky project

will not enable the firm to issue any additional debt.$)($Do not

round intermediate calculations. Enter your answer as a whole

percent.