Total - 5 Points Suppose you are planning to open a video gaming company. The company closest to your line of business is EA sports. Suppose the equity and debt betas for EA sport are 1.8 and 0.3, respectively. Suppose that EA sport currently has 10 million shares outstanding with a share price of $45. Suppose also that the risk-free rate is 5% and the return on the market portfolio is 12%. Suppose that EA sport has $90 million cash on its balance sheet and has a BB-rated debt of $150 million as well. Suppose that the marginal tax rate for EA sports is 25%. a. What is your estimate for debt and equity cost of capital for EA sports? (2 Points) b. If the yield on BB-rated debt is 23% and the probability of default is 40%, what is your estimate for the loss rate in case of f EA sport defaulting on its debt? (2 points) c. What is the weighted average cost of a capital estimate for your new business if your and EA sport's marginal tax rates are the same? (1 point)