Need 20-21

The lce Cream Inc.'s EBIT in the current year is $1,000. You expect the EBIT to grow by 15% for the next 2 years and 3% thereafter. The depreciation, the change in NWC, and the capital spending are also expected to grow at 3% until year 3 . The current level of depreciation, change in NWC, and capital spending are $80, $27, and $50, respectively. Assume the corporate tax rate of 30%. 20. What are the expected after-tax cash flow from assets in year 3 ? 21. The ice cream company's beta is estimated to be 1.3 . The equity market risk premium is 6%, and the risk-free rate is 2%. If the cost of debt is 4%, and the total debt ratio is 40%, what is the company's WACC