Assume no taxes or other frictions. Manufacturing Master Inc. $($MMI$)$ is an established manufacturing firm with

a steadily growing free cash flow. In particular, the free cash flow next year $($year $1)$ is expected to be $$269\mathrm{.}85$

million, and subsequent growth is expected to be $3\mathrm{.}73\%$ a year perpetually. The free cash flow is all paid out.

Currently $($year $0),$ MMI is all equity financed, with a cost of capital of $6\mathrm{.}72\%.$ The risk$-$free interest rate is $2\mathrm{.}51\%$

for all maturities.

What is MMI's current market value $($in year $0)?$

million dollars

Question $5,$ Part $($B$)$

What is MMI's weighted average cost of capital? C$)$MMI now decides to issue a new debt to buy back part of its equity. The new debt takes the form of a consol bond, paying $$57\mathrm{.}99$ million per year forever. The new debt is risk$-$free, given MMI$$s future cash flows. What is the market value of MMI$$s new debt?

$2310\mathrm{.}3586$

million dollars $$ D$)$What is the value of MMI$$s remaining equity after the debt issue and equity buyback?

$6714\mathrm{.}7250$

million dollars $$ E$)$What is MMI$$s weighted average cost of capital after the debt issue and equity buyback?

$6\mathrm{.}72$

$\%$ F$)$Next year $($year $1),$ after the payout to its equity and debt holders, what is MMI$$s debt to equity ratio?$\%$ G$)$Again$,$ next year $($year $1),$ after the payout to its equity and debt holders, what is MMI$$s weighted average cost of capital? $\%$ help me answer F and G$.$ Other questions are correct. $ decimals