1 - Suppose you borrow $500000 when financing a coffee shop which is valued at $1558500. You expect to generate a cash flow of $2000000 at the end of the year. The cost of debt is 6%. What should the value of the equity be?

2- Suppose you borrow $500000 when financing a coffee shop which is valued at $1558500. You expect to generate a cash flow of $2000000 at the end of the year. The cost of debt is 6%. What is the cost of equity?

3- Suppose you borrow $95000 when financing a coffee shop which is valued at $110000. Assume that the unlevered cost of capital for the coffee shop is 6.5% and that the cost of debt is valued at 5%. What should be the cost of equity of your firm?