NB! THIS IS A BONUS QUESTION You have been asked to evaluate the quality of investments at Megapolis Inc, a firm that operates in two businesses -- cement and steel. You have been provided the following information on the businesses: Market value of Unlevered beta of assets (in millions) business Cement 2 000 1.40 Steel 3 000 0.75 Total 5 000 The firm has 200 million shares, trading at $20 a share and faces a marginal tax rate of 25%. The company's bonds have an A rating and a default spread (over risk free rate) of 3%. The risk-free rate is 2% and the equity risk premium is 6%. Estimate: a. Market value of equity (E) and market value of debt (D) b. Unlevered beta for the total firm (can be found as a weighted average) and then levered beta for the firm c. Cost of equity and debt d. Cost of capital (WACC)