expected return according to CAPM?

E A D H You are working part-time in an investment company as an intern substituting junior investment and research analyst in January-May 2020. The company earn money by investing heavily into the shares of the companies that go public by subscribing for the shares, buying them for the offering price and then selling them in the market. Your company wants to invest a lot into Wow Inc. shares that goes public in May 2020. You collected the following information about the company and the market: Estimated credit rating of Wow Inc. by the credit rating agency: C Average Yield-to-Maturity of C-rated bonds by the credit rating agency: 7.55% Yield-to-maturity of US Treasuries: 1.5%. Expected market portfolio return:9%. Estimated beta of equity of the firm: 2.1 Proportion of equity in capital structure: 90% Effective expected tax rate on corporate income: 35% Number of shares issued: 2,000,000,000 (2 billion) Some data from the financial statements of Wow Inc., all in $ millions (II): Item As at 30/04/2019 As at 30/04/2020 Cash and marketable securities Interest expense, after-tax Share capital Dividends 4.400 3000 6.130 500 6.400 2500 6.800 0 All interest-paying debt 13.000 16.900 a) Calculate the expected return of Wow Inc. according to CAPM theory. b) Calculate the weighted Averame Cast of Cantal fine