Flakebook Corp. achieves a constant annual EBIT of $15.8 billion. The applicable tax rate is 27.5% and the beta of the (unlevered) business is 1.30. The firm has issued a total of 1, 300 million shares. A) Given a risk-free rate of 3.00% and an expected market return of 12.20%, what is the unlevered cost of capital of the firm? % B) What is the fair value of a share assuming constant EBIT (and ignoring depreciation and capital expenses)? $ The company issues a 5.00% semi-annual coupon bond with a face value of $19.5 billion at par and uses the proceeds to expand the existing lines of business. Soon after issuance, the bond trades at a yield equal to the risk-free rate (time until maturity is 7 years). C) Compute the market value of the debt. $ billion D) The share price rises to $69.21. Compute the levered equity beta: E) Compute the cost of equity: F) Compute the firm's WACC: Flakebook Corp. achieves a constant annual EBIT of $15.8 billion. The applicable tax rate is 27.5% and the beta of the (unlevered) business is 1.30. The firm has issued a total of 1, 300 million shares. A) Given a risk-free rate of 3.00% and an expected market return of 12.20%, what is the unlevered cost of capital of the firm? % B) What is the fair value of a share assuming constant EBIT (and ignoring depreciation and capital expenses)? $ The company issues a 5.00% semi-annual coupon bond with a face value of $19.5 billion at par and uses the proceeds to expand the existing lines of business. Soon after issuance, the bond trades at a yield equal to the risk-free rate (time until maturity is 7 years). C) Compute the market value of the debt. $ billion D) The share price rises to $69.21. Compute the levered equity beta: E) Compute the cost of equity: F) Compute the firm's WACC