(20 marks) Suppose that you are the CEO of John Smith Restaurant Chain Corp. Your firm's debt is 40% of the firm value. A risk-free rate is 4%, and the market risk premium is 7%. Also note that the covariance of the return on this stock with the market is 0.52. The variance of the market return is 0.35. All the debts in your firm are risk-free. Your firm's tax rate is 30%. You are to consider expanding its business and expect the cash flow of $45 million per year over a very long period. a. Compute the beta for equity. b. Compute the cost of equity. c. Compute WACC. d. What will be the maximum amount of initial investment