Soft4All Inc. operates in two businesses, software development and technology consulting. It derives 60% of its overall value from software and 40% from technology consulting. Soft4All has 80m shares outstanding and the market prices is currently $21/share. It also has an outstanding bond issue with a face value of $500m, that will mature in 8.5 years and pays an annual coupon of $20m. Soft4All has a rating of A. Companies with similar bond ratings face a default spread of 2.5%. The unlevered beta is 1.2 for the software business and 0.9 for the technology consulting business. The risk-free rate is 2.5% and the marginal tax rate for all firms is 20%. a. Estimate the current unlevered beta for the firm (5 points) b. Find the market value of the firm (5 points) c. Assume that Soft4All is considering selling half of the software business and use the proceeds the following way: Invest 1/3 of the proceeds in the technology consulting business . Use 2/3 of the proceeds to buy back stocks Estimate the new levered beta of the firm if it goes through with its plan (5 points)