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hi please help me answer this step by step with good explanation QUESTION 1 Troyes Jeux Web Amusants S.A. is a publicly traded company that

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hi please help me answer this step by step with good explanation

QUESTION 1 Troyes Jeux Web Amusants S.A. is a publicly traded company that operates in two businesses - it generates 60% of its value from entertainment games and 40% from children's games. The company has 100 million shares trading at Euro 8/share, has Euro 400 million (market and book value)in interest bearing debt and lease commitments of Euro 80 million each year for the next 5 years. The current levered beta for the firm is 1.15 and the current bond rating for the firm is BBB, which corresponds to a default spread of 1.5%. The ten-year treasury bond rate is 3.5%, the equity risk premium is 5% and the marginal tax rate is 40%. A. Estimate the current cost of capital for the firm

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