Gearing and Project specific cost of equity

1) Sir while calculating gearing via debt /equity ratio, do we include overdraft in debt?

2) Sir in card co D13 question where we are required to calculate project specific cost of equity through the process of ungearing equity beta then regearing asset beta and then inserting regeared equity beta in CAPM formula to calculate project specific cost of equity, suppose in this question if preference share capital was also given then would preference share capital be included in Debt OR would it be included in Equity?

Also project specific cost of equity is only being calculated when a company enters in a new business area, right? If company
is expanding existing or current business operation then project specific cost of equity would not be calculated, right ?