7:20 PM Sun May 5 100% 1:01 Exit For the third question, simply just write your answer to the question posed. If you have any questions concerning the problem, please contact me. A large pet-food manufacturer is considering buying a small boutique cat food business to add to their portfolio of pet foods. The head of the finance division has approached you, a recent TWU graduate, to conduct a financial analysis to determine the most the firm should pay for the cat food business The valuation of the cat-food business is based on cash flows of $180,500 per year over a five year period. The target business has the same risk as the firm's overall operations. The cost of equity is 15 percent and the cost of debt is 3 percent on an after-tax basis. The firm's capital structure consists of 10 million in equity and 8 million in debt. 1. Calculate the WACC for this firm Enter answer.. D 2 What is the most the firm can pay for the business per its required return (WACC) ? Enter answer... 3 How would a change in the WACC change the amount the firm would be willing to pay for the cat food business? Enter answer Submit