Need to calculate Asset Beta, Cost of Capital, PV, PV of interest-tax shield, and Highest acquisition price

This problem tests your understanding of the chapter appendix. A group of investors is intent on purchasing a publicly traded company and wants to estimate the highest price they can reasonably justify paying. The target company's equity beta is 1.20 and its debt-to-firm value ratio, measured using market values, is 60 percent. The investors plan to improve the target's cash flows and sell it for 12 times free cash flow in year 5. Projected free cash flows and selling price are as follows. in millions) Year 1 2 3 4 5 Free cash flows $25 $40 $45 $50 $50 $600 Selling price Total free cash flows $25 $40 $45 $50 $650