DataMaApp Inc. wishes to take some of the money made by going public to purchase one of its competitors. It is believed DataMaApp can generate expected cash flows of $10,000 a year forever from this acquisition. The firm being considered for purchase has a believed beta of 0.4.

a)How much is the firm worth if the risk-free rate is 5% and the expected market risk premium is 7%?

b)You find out later that the beta is actually 0.6. How much did DataMaApp mis-value the firm by?

c) Another option being considered is a purchasing a security that has a risk-free rate of 4%, an expected market risk premium is 7% and a beta of 1.25. If the expected rate of return is 11%, is the security overpriced or underpriced? Why or why not?

PLZ show the work detail, thank you