Answer the following questions regarding to Fiat's cost of capital. Suppose Fiat appeals to international investors by listing on the London stock exchange. Fiat can borrow the London market at a pretax cost of 5.5 percent. The euro risk-free 5 percent. International investors are willing to tolerate a 40 percent debt-to-value mix at this cost of debt. The beta of Fiat is 1.5 against the MSCI world index. The risk premium on the world market portfolio is 4 percent. Interest payments are tax deductible in Italy at the marginal corporate income tax rate of 40 percent. What is Fiat's weighted average cost of capital? b. Suppose Fiat will generate after-tax operating cash flow of 20 million euros in the coming year, and that this is expected to grow at a g = 1 percent rate in perpetuity. Use the equation V_0 = CF_1/(i_wACC - g) to value Fiat, given CF_1 is the coming year's cash flow, a weighted average cost of capital of i_wACC, and a growth rate of g. Find Fiat's value using the weighted average costs of capital from a). Suppose Fiat needs a cost of capital estimate to evaluate an investment in India's automotive market Please discuss the cost of capital models for Fiat in this emerging market