The following data apply to the next two questions

Dana Company is headquartered in Riyad with offices in Kuwait, Abu Dobie, Manama, and London. The book value of Danas outstanding debt is $20 million. Currently, the debt is trading at 90% of book value and is priced to yield 12%. The 2 million outstanding shares of Dana stock are selling for $30 per share. Dana Company has a beta of 1.3. The current risk-free rate is 7.5%, and the market risk premium (MRP) is 7%. The tax rate is 30%.

Q8. What is Danas estimated cost of equity? (Hint: use CAPM Model) a. 14.00%. b. 15.16%. c. 15.50%. d. 17.77%. e. none of the above, the answer is _____________%.

Q10. What is the synergy from the merger of Tesla and Twitter? Tesla was worth $95 billion, and Twitter had a market value of $40 billion. Tesla acquired Twitter for $44 billion because they thought the combination of Tesla & Twitter was worth $150 billion.

a) $4 billion b) $15 billion c) $55 billion. d) $84 billion. e) None of the above, the answer is $____________.