FUFU is looking to see whether acquiring WWW is a good idea in order to evaluate this deal. FUFU is looking at the following information.

Anticipated FCFSs for WWW are:

CF1: 1000

CF2: 2000

CF3: 3000

Bond for FUFU:

Price: 850

Yearly coupon: 8.00%

Maturity: 10 years

Face value: 1000

Bond for WWW:

Price: 1100

Yearly coupon: 5.00%

Maturity: 10 years

Face value: 1000

Beta for FUFU: 1.2

Beta for WWW: 2

Market return: 15%

Risk free rate: 4%

Growth rate for WWW: 3%

D/E ratio for FUFU: 1/3

D/E ratio for WWW: 1/4

Tax rate for FUFU: 20%

Tax rate for WWW: 30%

What is the proximate cost of debt for Fufu before taxes?

A. 10.49

B. 9.27

C. 12.09

D. 8.05

Continuing with the previous question, what is the cost of debt for WWW?

A. 4.58

B. 3.78

C. 5.07

D. 6.82

Continuing with the previous question, what is the cost of equity for WWW?

A. 18.3

B. 26

C. 22.4

D. 22

Continue with the previous question what is the approximate WACC for fufu?

A. 14.99

B. 21.25

C. 16.86

D. 19.07

Continuing with the previous question what is the approximate WACC for WWW?

A. 23.05

B. 19.66

C. 18.26

D. 21.33

Continuing with the previous question what is a Terminal value for year three for WWW?

A. 16,858

B. 12,334

C. 11,269

D. 10,052

What should the approximate price for WWW?

A. 10,526

B. 13,301

C. 15,833

D. 9573

If Fufu acquires WWW, What would be the approximate NPV of this investment?