5. Tri Co. has the following cost of debt structure: The market risk premium is 4.5%, the risk free rate is 3. beta of unleveraged firm is 1.10, Hamada's equation b= bu [1 + (1 - 1) wa/we)]. T=30%. Please use the above information to answer following questions: 0% 20% 30% 40% 50% d 0.0% 9.0% 10.0% 11.0% 12.0% a. If the firm uses 60% debt, what is the cost of equity of the firm, based on CAPM model? b. What is WACC of the firm? c. If FCF0 = 500 million, g=5%, what is the firm value