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Flakebook Corp. achieves a constant annual EBIT of $5.9 billion. The applicable tax rate is 37.5% and the beta of the (unlevered) business is 1.33. The firm has issued a total of 600 million shares. A) Given a risk-free rate of 3.80% and a market risk premium of 10.50%, what is the unlevered cost of capital of the firm? B) What is the fair value of a share assuming constant EBIT (and ignoring depreciation and capital expenses)? $ The company issues a 6.60% semi-annual coupon bond with a face value of $9.0 billion at par and uses the proceeds to expand the existing lines of business. Soon after issuance, the bond trades at a yield equal to the risk-free rate (time until maturity is 8 years). C) Compute the market value of the debt. $ billion D) The share price rises to $41.51. Compute the levered equity beta: E) Compute the cost of equity: % F) Compute the firm's WACC: % Flakebook Corp. achieves a constant annual EBIT of $5.9 billion. The applicable tax rate is 37.5% and the beta of the (unlevered) business is 1.33. The firm has issued a total of 600 million shares. A) Given a risk-free rate of 3.80% and a market risk premium of 10.50%, what is the unlevered cost of capital of the firm? B) What is the fair value of a share assuming constant EBIT (and ignoring depreciation and capital expenses)? $ The company issues a 6.60% semi-annual coupon bond with a face value of $9.0 billion at par and uses the proceeds to expand the existing lines of business. Soon after issuance, the bond trades at a yield equal to the risk-free rate (time until maturity is 8 years). C) Compute the market value of the debt. $ billion D) The share price rises to $41.51. Compute the levered equity beta: E) Compute the cost of equity: % F) Compute the firm's WACC: %