1. Answer the following questions given an equity cost of capital of 8%, a market cap of equity of $470 million, an enterprise value of $630 million, a cost of debt of 5.2%, and corporate income tax rate of 28.1%. What is the firm's WACC? If the debt-equity ratio is kept constant, value the project given the initial investment and subsequent cash flows: a. b. Year Free cash flow 0 1 3 -$4.4 million $2.3 million $4.4 million $3 million Compute the debt capacity of this new project assuming the firm maintains its debt-equity ratio. c