Question 4 [20 marks] In 2016, venture capital (VC) firm Sequoia Capital was valuing Zoom Video Communications, Inc. ("Zoom"), then a private company. The analysts at Sequoia Capital identified 20 listed companies in the Software and Communications Technology industry as a benchmark. Table below summarizes the relevant information collected: Assume that the risk-free rate was 3\% and the market risk premium was 10%. Answer questions a) and b) below. a) [10 marks] Since Zoom was a private company, the VC used the industry beta as an approximation. Estimate the unlevered cost of capital for Zoom. *For full credit, you must show the steps/calculation toward your results. b) [10 marks] Suppose that Zoom faced a marginal tax rate of 0% and had a leverage ratio of 20% (equivalently, debt to equity 0.25 ). Assume that its cost of debt was estimated at 5%. Determine Zoom's weighted average cost of capital (WACC). *For full credit, either justify your answer or show the steps/calculation toward your results