5. Consider Tablet Company again, but suppose Tablet announced that will aim to have a certain leverage ratio instead of a predetermined debt schedule. Its free cash flows File Preview Year 0 1 FCF 2 150 200 It announces that it intends to maintain a leverage ratio (D/V) of 40% going forward. Assume that after year 2 the FCFs grow at a rate of 2% each year. The unlevered cost of capital is 12%, the expected return on debt is 4%, and the tax rate is 40%. (a) Calculate the cost of equity. (b) Calculate the after-tax WACC. (c) Calculate the total value of the firm using the after-tax WACC method right now (year 0).