(b) Given the following financial information of a company: coupon rate=5%, marginal tax rate = 40%, and bond=500, rate of returns on stock= 25%, and stock=500.

Compute the weighted average cost of capital (WACC) and the present value of free cash flow for the table 1 below (initial capital is 1000):

Year	Free cash flow	Present value factor (@ WACC)	Present value
0	-1000
1	250
2	250
3	250
4	250
5	250
5*	1250
		Total:

(8 marks)

PLEASE SOLVE THIS ASAP!! REALLY NEED HELP