Hula Enterprises is considering a new project to produce solarwater heaters. The finance manager wishes to find an appropriaterisk adjusted discount rate for the project. The (equity) beta ofHot Water, a firm currently producing solar water heaters, is 1.4.Hot Water has a debt to total value ratio of 0.3. The expectedreturn on the market is 0.08, and the riskfree rate is 0.07.Suppose the corporate tax rate is 30 percent. Assume that debt isriskless throughout this problem. (Round your answers to 2 decimalplaces. (e.g., 0.16)) a. The expected return on the unleveredequity (return on asset, R0) for the solar water heater project is%. b. If Hula is an equity financed firm, the weighted average costof capital for the project is %. c. If Hula has a debt to equityratio of 0.8, the weighted average cost of capital for the projectis %. d. The finance manager believes that the solar water heaterproject can support 40 cents of debt for every dollar of assetvalue, i.e., the debt capacity is 40 cents for every dollar ofasset value. Hence she is not sure that the debt to equity ratio of0.8 used in the weighted average cost of capital calculation isvalid. Based on her belief, the appropriate debt ratio to use is %.The weighted average cost of capital that you will arrive at withthis capital structure is