Can you please explain these answers.
It is the end of 2012. You have developed a method for growing cow protein in a laboratory, ending the need to raise and slaughter Cattle. The protein has a uniform and high quality flavor- It is also free of impurities, diseases, and stress hormones found in protein from farm raised animals. 1i'ou think you can mass produce the protein to consumers It will have a high price, but 1will appeal to high-end consumers concerned about their health, the environrnent, and animal cruelty. You will call the company Cruelty-Free Protein [EFF]. You have spent $100,000 on tost marketing the protein. You have laboratory equipment and research and development that would have to be contributed that could otherwise be sold today for $1,010,000 net of taxes. You believe that after 2016 cash flows will grow by 6'36 per year, so that the cash flow in 2015" is 6%": higher than in 2016, and so forth and so on. Your company's debt ratio will be 6396. The marginal corporate tax rate is 3516. The projected f'mancials for the project are on the following page. There is a publicly traded company called Soy Solutions that you believe is most comparable to your project. They have a debt ratio of 4016. The yield to maturity on their debt is 1256. With a debt ratio of 6316, you think that the yield to maturity on their debt would be 8.4%. They also have a marginal tax rate of 35%. Their stock beta is 1.5. The expected return on the market is 12% and the rislcrfree rate of interest is 5'56. "For a-c, round out to four decimal places. a. {10 points} Calculate R0 {the unlevered required return on the stock} for Boy Solutions. .1299 h. {6 points} What is Rs {the required rental on equity} for EFF? .160? c. {6 points} What is the WAGE for CFP'? .1013 cl. {16 points} What is the NPV? lie sure to carefully show all of your calculations, including all of the cash ows and forinulas with numbers plugged in. Please clearly indicate what you are adding and subtracting to get to your cash flow numbers