SuperOnline is a company composed of two divisions: online commerce and fintech. It is planning to spin off its fintech division. Currently, SuperOnline has 10 million shares of stocks trading at $170. Its debt / value ratio is 10%. It will keep itsdebt amount constant forever (even after spin-off). Onlinecommerce division's EBIT is expected to be100 million at the end of this year and grow 2% every year.Fintech division's EBIT is expected to be50 million at the end of this year and is expected to grow 7% every year.Fintech division'scurrent debt is 150 million and it will keepthe debt amount constant (even after spin-off). EasyFintech is SuperOnline's fintech business rival and it is only in fintech business. EasyFintech's debt/equity ratio is 25%, its cost of equity is 15%. Assume all debts are riskless. Risk-free rate is 10%. Market Risk premium is 8%. Tax rate is 35%.

(a)What is cost of capital for SuperOnline's fintech division?(3pt)

(b)What is the fair value of SuperOnline's fintech division's equity?(3pt)

(c) Compute the value and debt of online commerce division of SuperOnline. (3pt) (d)What is cost of capital of SuperOnline's online commerce division?(3pt)