selling price are as follows. (4 millions) Year Free cash flows Selling price Total free cash flows 12 $27 $42 $47 3 4 $52 5 52 $624 $27 $42 $47 $52 5676 To finance the purchase, the investors have negotiated a $420 million, five-year loan at 8 percent interest to be repaid in five equal payments at the end of each year, plus interest on the declining balance. This will be the only interest-bearing debt outstanding after the acquisition. Belected Additional Information Tax rate 40 percent Risk-free interest rate 3 percent Market risk premium 5 percent a. Estimate the target firm's asset beta. (Round your answer to 2 decimal places.) Answer is complete and correct. Target firm's asset beta 0.480 b. Estimate the target's unlevered, or all-equity, cost of capital (KA) (Round your answer to 1 decimal place.) Retur