GloboChem is an all-equity firm with expected (annual) free cash flow of $100M next year. Free cash flow is expected to grow 2% thereafter in perpetuity. The company's unlevered cost of capital is 10%, its tax rate is 35% abd it has 100M shares outstanding. GloboChem has decided to borrow sufficient funds so that it attains a D/V ratio of 25% (debt-to-equity of 0.3333). It pledges to maintain that proportional capital structure in perpetuity. The company's cost of debt is 5%. Use this information to answer the following questions. a.) What is the return on equity for the levered firm,kE? (Prop II) b.) What is the WACC for GloboChem? c.) What is the market value of the firm after the debt issue? (Hint: Use a DCF valuation) d.) What is the market value of the debt? (Recall that D/V = 25%) e.) What is the fair value of the price of a share?