Question 3: Suppose Company A is considering purchasing Company B. The current market capitalization of Company A is $300 billion with a capital structure of 30% debt and 70% equity and 2 billion shares outstanding; Company B is valued at $100 billion with a half-half debt/equity capital structure and 1 billion shares outstanding Given: Equity Beta of B is 2.25 and A is 1.2. Both firms' debt are riskless. Market risk premium is 10% and the risk-free rate is 5%. There are no synergy between the two firms in cash flows. Q1) What is the share price of each firm before the acquisition? Q2) What is the weighted average cost of capital of each firm before the acquisition? hat will be the weighted average cost of capital of the combined firm? OR WACC after the acquisition. Q3) W