Please show all work and calculations by hand. I am trying to learn the steps. Please don't use excel.

(25) 4. The Pyramid Company, a privately-held company, has two operating divisions : Toys, which accounts for 60+ of firm value; and, Food, which accounts for 404 of firm value. The Pyramid Company is financed with debt ($20 million) and equity ($10 million); the equity has a beta of 2.08. The Pyramid company has gathered the following data on two competing firms, each of which is very similar to the corresponding division of Pyramide: Equity Beta Debt / (Debt-Equity Tony's Toys .70 .30 Fido's Food 1.67 Assume the debt of ALL companies is risk-free. Further, assume the risk-free rate of return is 2$, the expected return on the market portfolio is 10%, and the standard deviation of return on the market portfolio is 20+. Assume perfect markets. (A) Calculate the weighted Average cost of capital (WACC) of the Pyramid Company. .40 D DIE (1-1)otore re CA - (30 (+00.10) 2 TA TO 7 (B) The Pyramid Company's Food division is considering a project with the following expected cash flowe: to -502 tul +250 to2 +180 to3 +157 10 Is this a good project or a bad project? wer: -5021(250/1.10) 580/1.109 "(152/1,107) NAVO-502+227.27272734 198. 7603306* 117 9569237 NPV -8.010s 184 NPV is less than o which means the bod project. I 8