Sony achieves constant annual Ebit of $4.6 billion. Tax rate is 30%. Beta of the unlevered business is 1.25. Firm has issue 2,100 million shares. A) Given risk free rate of 4% and an expected market returnof 15% what is the unlevered cost of capital of the firm?

B) What is the fair value of share asssuming constant EBIT ( ignoring depreciation and capital expenses) The company issues a 4.5% semi annual coupon with a face value of $5 billion at par and uses proceeds expand business. Soon after issuance, bonds trade at a yield equal to the risk free rate ( time until maturity is 10 years)/ C) Compute the market value of debt

D>) share price rises to $14.80. Compute levered equity beta

E) Compute cost of equity

F.) compute firms WACC