Fleecebook Inc. achieves a constant annual EBIT of $21.6 billion. The applicable tax rate is 30.0% and the beta of the (unlevered) business is 1.43. The firm has issued a total of 2,600 million shares. A) Given a risk-free rate of 3.20% and a market risk premium of 10.40%, 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 4.20% semi-annual coupon bond with a face value of $30.0 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 8 years). C) Compute the market value of the debt. $ billion D) The share price rises to $39.32. Compute the levered equity beta: E) Compute the cost of equity: % F) Compute the firm's WACC: % Fleecebook Inc. achieves a constant annual EBIT of $21.6 billion. The applicable tax rate is 30.0% and the beta of the (unlevered) business is 1.43. The firm has issued a total of 2,600 million shares. A) Given a risk-free rate of 3.20% and a market risk premium of 10.40%, 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 4.20% semi-annual coupon bond with a face value of $30.0 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 8 years). C) Compute the market value of the debt. $ billion D) The share price rises to $39.32. Compute the levered equity beta: E) Compute the cost of equity: % F) Compute the firm's WACC: %