I need to have the right answers to the following tasks (see attachment)

1. You have been asked to value one of the biggest global companies, Malicaca, Inc., but using only the information provided to you (modified to camouflage the real identity of the company). Malicaca, Inc. is expected to have revenues of $500 million next year (t = 1) that are expected to grow at 8% per year thereafter for the foreseeable future. The data presented to you shows that COGS and SGA are expected to remain at 50% and 10% of revenues for the foreseeable future. For simplicity, you are also asked to make the following assumptions: (a) depreciation is 15% of revenues; (b) it is safe to assume that capital expenditures will be approximately equal to depreciation; and, (c) Malicaca, Inc. will be able to manage with no changes in working capital. You are also provided some detailed information about the Malicaca, Inc.'s main competitors and some market data. The business competitors have an average beta of equity of 2.50, and an average debt/equity ratio of 35% with an average beta of debt of 0.25. The risk free rate is 2.50% and the expected market risk premium (the difference between the market return and the risk free rate) is 4.00% for the foreseeable future. The tax rate is 34%. a) Assume that the interest payments on debt are tax deductible and for the industry/comparables the tax shield on debt is as risky as the assets of a business. What is the average return on assets in Malicaca, Inc.'s industry? (No more than two decimals in the percentage but do not enter the % sign.) b) Suppose the equity beta of Malicaca, Inc. is equal to the beta assets in this business, its current debt/equity ratio is ... (No more than two decimals in the percentage number but do not enter the % sign.) c) Suppose Malicaca Inc. has the same equity beta as the beta of assets in the business and plans to maintain its current capital structure for the foreseeable future, the value of the company today is ... (Enter an amount rounded off to the nearest whole number but without the $ sign.) d) Suppose Malicaca Inc. has the same equity beta as the beta of assets in the business and has 50 million shares outstanding, the price per share of Malicaca, Inc. is ... (Enter a number with up to two decimals but without a $ sign.) 2. You have a challenge ahead of you because you have been given a valuation exercise by your potential employer to demonstrate the skills you have learned in a Massive Open Online Course (MOOC) offered by one of the leading universities of the world. As part of your three-day final interview, you are expected to estimate the value of a company. Your potential employer is keen to determine whether you understand both big picture issues and the details, and she therefore presents you with many questions. Specifically, you have been asked to value an existing well-known company, Dramazon, Inc., but using only the information provided to you (modified to camouflage the real identity of the company). Dramazon, Inc. is expected to have revenues of $1 billion next year (t = 1) that are expected to grow at 5% per year thereafter for the foreseeable future. The data presented to you shows that COGS and SGA are expected to remain at 55% and 20% of revenues for the foreseeable future. For simplicity, you are also asked to make the following assumptions: (a) depreciation is 10% of revenues; (b) it is safe to assume that capital expenditures will be approximately equal to depreciation; and, (c) Dramazon, Inc. will be able to manage with no changes in working capital. After all, it has already demonstrated to the world how to manage working capital: reduce costs of inventory by acquiring warehouses in the middle of nowhere, make customers pay well in advance while paying suppliers as late as possible. You are also provided some detailed information about Dramazon, Inc.'s main competitors and some market data. The business competitors have an average beta of equity of 1.50, and an average debt/equity ratio of 25% with an average beta of debt of 0.15. The risk free rate is 2.50% and the expected market risk premium (the difference between the market return and the risk free rate) is 4.00% for the foreseeable future. The tax rate is 34%. a) Assume that the interest payments on debt are tax deductible and for the industry/comparables the tax shield on debt is as risky as the assets of a business. What is the average return on assets in Dramzon, Inc.'s industry? (No more than two decimals in the percentage but do not enter the % sign.) b) Assume that the interest payments on debt are tax deductible and for the industry/comparables the tax shield on debt is as risky as the assets of a business. Competitors in the business have approximately the same debt/equity ratio of 25%, what is the average WACC in Dramzon, Inc.'s industry? (No more than two decimals in the percentage but do not enter the % sign.) c) The interest payments on debt are tax deductible and the tax shield on debt is as risky as the assets of a business. Suppose the equity beta of Dramzon, Inc. is 1.23, what is its current debt/equity ratio? (No more than two decimals in the percentage but do not enter the % sign.) d) The interest payments on debt are tax deductible and the tax shield on debt is as risky as the assets of a business. Suppose the equity beta of Dramzon, Inc. is 1.23 and plans to maintain its current capital structure for the foreseeable future, the value of the company today is (Enter an amount rounded off to the nearest whole number but without the $ sign.) e) Suppose the equity beta of Dramzon, Inc. is 1.23 and has 6 million shares outstanding, the price per share of Dramazon, Inc. is (Enter a number with up to two decimals but without a $ sign.) Dramazon, Inc. has been advised for years to take on debt but the CEO has been hesitant. You have been presented with two distinct capital structure policies that you are supposed to evaluate, again both in terms of the big picture implications and the impact on various stakeholders. This is your opportunity to showcase your talent and knowledge of valuation. POLICY I involves taking on $1 billion of debt today (t = 0) and buying back an equivalent dollar amount of shares. The debt will then grow at the estimated growth in free cash flows of 5% per year. Assume that the tax rate is 34%, interest payments on debt are tax deductible and the tax shield on debt is as risky as the assets of Dramazon, Inc. The return on debt is 3% per year. [In fact, this is the most reasonable assumption to make under this specific capital structure policy.] f) The value of Dramazon, Inc. will increase to (Enter an amount rounded off to the nearest whole number but without the $ sign.): g) What will be the number of shares remaining in Dramazon, Inc. if it adopts this debt policy? (Enter a magnitude rounded off to the nearest whole number) h) What is the debt/equity ratio today (t = 0) implied by this debt policy? (Enter a number in percentage form with up to two decimals but without the % sign.) i) The return on equity implied by this new debt policy is (No more than two decimals in the percentage but do not enter the % sign.)