Weasleys' Wizard Wheezes. Fred and George Weasley decide to drop out of their final year at Hogwarts School of Witchcraft and Wizardry and set up the Weasleys$$ Wizard Wheezes at $93$ Diagon Alley. Their friend Harry Potter helps them to kickstart their business by providing them with his winnings from the recently concluded Triwizard Tournament as seed money. The assumptions listed below appear in the data file.

Debt: The Weasley twins also raise $$100,000$ as debt from the Gringotts Wizarding Bank. Their pre$-$tax cost of debt is $5\%.$

Revenue: The store expects to earn $$15,000$ in Year $1$ in revenues. Given the high demand for Weasleys$$ products, their revenues are expected to grow at $10\%$ for the next two years.

Cost of Goods Sold: The cost to manufacture Weasleys$$ products is expected to be $$5,000$

in Year $1,$ $$6,000$ in Year $2$ and $$8,000$ in Year $3.$

Additional Selling Expenses: Subscription to Owl post service to deliver products will cost $$500$ each year for Years $1$ to $3.$ Moreover, the store rent at Diagon Alley will be $$1,500$ each year for the first three years.

Renovation Costs: The twins spend $$15,000$ upfront $($Year $0)$ in store renovations. This amount is depreciated to zero over the first three years $($Years $1$ to $3)$ following the straight$-$line depreciation method.

The free cash flows grow at $3\mathrm{.}5\%$ forever after Year $3.$

Equity beta: The equity beta of Weasleys$$ Wizard Wheezes shares is estimated to be $0\mathrm{.}70.$

Risk$-$free rate: The risk$-$free rate in the wizarding world is $2\mathrm{.}50\%.$

Market risk premium: The expected market risk premium in the wizarding world is $5\%.$

The corporate tax rate levied by the Ministry of Magic is $15\%$

Part $1$: Assuming that the Capital Asset Pricing Model holds in the wizarding world, what is the cost of equity of Weasleys$$ Wizard Wheezes?

Part $2$: What is the debt$-$to$-$value $($D$/$V$)$ ratio of Weasleys$$ Wizard Wheezes?

Part $3$: What is the enterprise value or firm value of Weasleys$$ Wizard Wheezes?

Part $4$: What is the equity value of Weasleys$$ Wizard Wheezes?