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Please help. Thank you An all-equity financed company has a cost of capital of 10 percent. It owns one asset: a mine capable of generating

Please help. Thank you

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An all-equity financed company has a cost of capital of 10 percent. It owns one asset: a mine capable of generating $111 million in free cash flow every year for five years, at which time it will be abandoned. A buyout firm proposes to purchase the company for $430 million financed with $380 million in compound interest debt to be repaid in five, equal, end-of-year payments and carrying an interest rate of 8.0 percent. a. Calculate the annual debt-service payments required on the debt. b. Ignoring taxes, estimate the rate of return to the buyout firm on the acquisition after debt service. Note: Round your answer to 1 decimal place. a Annual debt service payment million b. Rate of return %

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