Corporate Finance

please provide me with details how you reach the final answer.

I need answer only part g)!!!!! The LAST QUESTION g)

General Motors (GM) was evaluating the acquisition of Hughes Aircraft Corporation. Recognizing that the appropriate WACC for discounting the projected cash flows for Hughes was different from its WACC, GM assumed that Hughes was of approximately the same risk as Lockheed or Northrop. Consider the following information: BE D/E Comparison Firm GM Lockheed Northrop 1.20 .90 .85 .40 .90 .70 Target D/E for acquisition of Hughes = 1 Hughes' expected unlevered cash flow next year = $300 million Growth rate of cash flows for Hughes = 5% per year Marginal corporate tax rate = 34% All corporate debts are risk free, static and perpetual Risk free rate = 8% Expected return of the market portfolio = 14% (a) Compute the unlevered betas of the comparison firms, Lockheed and Northrop. (b) Compute the unlevered beta of Hughes by taking the average of the unlevered betas of Lockheed and Northrop. (c) Compute the equity beta of Hughes at the target debt level. (d) Compute the WACC for the Hughes acquisition. (e) Compute the value of Hughes with the WACC from (d). (f) Compute the value of Hughes if the WACC of GM at its existing leverage ratio is used instead of the WACC computed from the comparison firms. (g) Apply the APV method as follows: (i) compute the value of the unlevered assets of Hughes; (ii) compute the present value of the tax shield; (iii) Add these two numbers. General Motors (GM) was evaluating the acquisition of Hughes Aircraft Corporation. Recognizing that the appropriate WACC for discounting the projected cash flows for Hughes was different from its WACC, GM assumed that Hughes was of approximately the same risk as Lockheed or Northrop. Consider the following information: BE D/E Comparison Firm GM Lockheed Northrop 1.20 .90 .85 .40 .90 .70 Target D/E for acquisition of Hughes = 1 Hughes' expected unlevered cash flow next year = $300 million Growth rate of cash flows for Hughes = 5% per year Marginal corporate tax rate = 34% All corporate debts are risk free, static and perpetual Risk free rate = 8% Expected return of the market portfolio = 14% (a) Compute the unlevered betas of the comparison firms, Lockheed and Northrop. (b) Compute the unlevered beta of Hughes by taking the average of the unlevered betas of Lockheed and Northrop. (c) Compute the equity beta of Hughes at the target debt level. (d) Compute the WACC for the Hughes acquisition. (e) Compute the value of Hughes with the WACC from (d). (f) Compute the value of Hughes if the WACC of GM at its existing leverage ratio is used instead of the WACC computed from the comparison firms. (g) Apply the APV method as follows: (i) compute the value of the unlevered assets of Hughes; (ii) compute the present value of the tax shield; (iii) Add these two numbers