Help with the financial economics questions below in the image attached

3. Thor Industries is a leading manufacturer of recreational and other specialty vehicles. The total value of the company's manufacturing and other assets is currently $6.8 billion, but this is somewhat volatile with an annual variance of 16 per cent. In CAPM terms, these assets have a 5 value of 1.152. Against its assets, Thor has debt liabilities comprised of five-year, zero coupon bonds due to pay $3 billion on maturity. The expected return on the broad market portfolio is 8% and the risk-free rate is 2%. a. What is the value of Thor equities? What is the interest rate Thor pays on its debt? Explain. b. What is the CAPM beta value for Thor stock? What is Thor's cost of equity capital? c. Assume that debt is not taxed and that the corporate tax rate is 20 percent. Thor has investment opportunity that will cost $300 million and that will generate a perpetual EBIT of $27.15 million. What will be the value of Thor equity if it undertakes this project? 4. Assume a simple world in which investors are risk~neutral and bond defaults happen only at the end of the year. Hence, accrued interest is no longer a concern in a credit default swap (CDS) contract. The expected default payment at the end of any year t is thus discounted by the relevant discount factor. Consider then a bond package with a notional value of $100,000. a. Determine the probability of default in any period conditional on reaching no default prior to that period that investors perceive if the \"spread\" is 1.5 percent; the risk-free rate of interest is one percent, the recovery rate is 50 percent, and the debt has a maturity of six years. What is the total expected present value of the \"spread\" payments that the CDS buyer will make? b. As an alternative to buying the CDS above, imagine instead buying a package of six European puts on the bond package, each with a strike price of $100,000 with one that expires in one year; one that expires in two years; one that expires in three years; one that expires in four years; one that expires in ve years, and one that expires in six years. Show that the price of these six puts combined is equal to the present value of the payments made by the CDS buyer above. 0. Is your analysis consistent with Put-Call Parity? Explain