The corporate finance manager of Manchester United FC, is considering making an offer to buy Lionel Messi. To bring Messi to Manchester for three years, they need to spend $700 million. MU expects that the club will make $300 million in profit every year in the next 3 years from due wins, tickets, and marketing of the football (soccer?) star. MU currently has 50 million stocks, priced at $40 each. Analysts suggest that its beta is 1.3. MU firm also has 2 million bonds, each trading at $900. Their maturity is 10 years, and they pay a coupon of 5% (semi-annual). Assume that the risk free rate is 1%, the market return is 8%, and the tax rate is 35%.