ANSWER THE FOLLOWING QUESTION CORRECTLY

Arizona Rock, an all-equity firm, currently has a beta of 1.25. The risk-free rate, rRF, is 7% and the market risk premium, RPM, is 7%. Suppose the firm sells 10% of its assets with beta equal to 1.25 and purchases the same proportion of new assets with a beta of 1.1. What will be the firm's new overall WACC, and what rate of return must the new assets produce in order to leave the stock price unchanged?