Company ABC, a social media firm, has the following characteristics: - There are 200 million shares outstanding, trading at $100 per share. - The firm has a book value of debt $50 billion (with a maturity of 10 years) and interest expenses of $1 billion on the debt. The firm is not rated, but it has operating income of 2.5 billion last year. - The tax rate for the firm is 30%. - The equity risk premium is 6% - The estimated bond ratings and the corresponding default spreads for various ranges of interest coverage ratio are: The Treasury bond rate is 6%, and the unlevered beta of other social media firms is 1.0 . a) Based on the estimated synthetic rating, calculate the pre-tax cost of debt for ABC. b) Estimate the market value of debt for ABC. c) Estimate the cost capital for ABC