Flagstaff Enterprises expected to have free cash flow in the coming year of $8 million, and this free cash flow is expected to grow at a rate of 3% per year thereafter. Flagstaff has an equity cost of capital of 13%, a debt cost of capital of 7%, and it has a 35% corporate tax rate.

1. If Flagstaff maintains a .5 debt to equity ratio, calculate its pre-tax WACC

2. If Flagstaff maintains a .5 debt to equity ratio, calculate unlevered value of Flagstaff

3. If Flagstaff maintains a .5 debt to equity ratio, calculate its after-tax WACC

4. If Flagstaff maintains a .5 debt to equity ratio, calculate levered value of Flagstaff

5. If Flagstaff maintains a .5 debt to equity ratio, calculate value of Flagstaff's interest tax shield (difference between Vl and Vu)