1. H & P Investment requires your service to compute the financial data for the company. The CFO provided the following data.

($ in millions) H & P Investment Financial Summary
Capital expenditures	$150
Interest Expense	$300
D & A	$150
Tax rate	35%
Increase in net working capital	$50
Risk free rate	4%
Expected return on market	10%
Levered beta	1.6
Long term debt	$35,000
EBIT	$900
Total equity	$30,000

Use the information from the table to answer the following questions.

1. Calculate the market risk premium? (2 Marks)

1. Calculate the value of CAPM (3 Marks)

1. Calculate the unlevered beta (3 Marks)

1. Compute the unlevered Free Cash Flow. (8 Marks)