Maxis Communications reported earnings before interest and taxes of $850 Million in 2017, with a depreciation allowance of $400 million and capital expenditures of $500 million in that year; the working capital requirements were negligible. The earnings before interest and taxes and net cap ex are expected to grow 20% a year for the next five years. The cost of capital is 10% and the return on capital is expected to be 15% in perpetuity after year 5; the growth rate in perpetuity is 5%. 

The firm has $10 billion in debt outstanding with the following characteristics:  

  

Duration 1 year 2 years 5 years Debt $2 billion $4 billion $4 billion