1. Tri Co. has the following cost of debt structure: The market risk premium is 4.5%, the risk free rate is 5%, beta of unleveraged firm is 1.20, Hamadas equation b= b_U [1 + (1 - T)(w_d/w_e)]. T=40%.

Please use the above information to answer following questions:

wd	0%	20%	30%	40%	50%
rd	0.0%	9.0%	10.0%	11.0%	12.0%

1. If the firm uses 50% debt, what is the cost of equity of the firm, based on CAPM model?
2. What is WACC of the firm?
3. If FCF₀ = 200 million, g=4%, what is the firm value?