the risk-free rate equals 5%, and the expected return on the market equals 11%. The asset beta for this industry is 1.11 . a. If AMC were an all-equity (unlevered) firm, what would its market value be? b. Assuming the debt is fairly priced, what is the amount of interest AMC will pay next year? If AMC's debt is expected to grow by 3.0% per year, at what rate are its interest payments expected to grow? assets, what is the present value of AMC's interest tax shield? d. Using the APV method, what is AMC's total market value, VL ? What is the market value of AMC's equity? e. What is AMC's WACC? (Hint: Work backward from the FCF and vL.) f. Using the WACC, what is the expected return for AMC equity? g. Show that the following holds for AMC: A=D+EEE+D+EDD