Tybo Corporation adjusts its debt so that its interest expenses are 20% of its free cash flow. Tybo is considering an expansion that will generate free cash flows of $2.82 million this year and is expected to grow at a rate of 4% per year from then on. Suppose Tybo's marginal corporate tax rate is 36%.

a. If the unlevered cost of capital for this expansion is 9.3%, what is its unlevered value?

b. What is the levered value of the expansion?

c. If Tybo pays 5.2%interest on its debt, what amount of debt will it take on initially for the expansion?

d. What is the debt-to-value ratio for this expansion? What is its WACC?

e. What is the levered value of the expansion using the WACC method?