XYZ Industries is considering the acquisition of another firm in its industry for $100 million. The acquisition is expected to increase XYZ's free cash flow by $5 million the first year, and this contribution is expected to grow at a rate of 3% every year thereafter. XYZ currently maintains a debt to equity ratio of 1, its marginal tax rate is 40%, its cost of debt rD is 6%, and its cost of equity rE is 10%. XYZ Industries will maintain a constant debt-equity ratio for the acquisition. Answer, and show work, for each of the following. (5 each)

a.) Compute XYZ's unlevered cost of capital.

b.) Compute the unlevered value of XYZ's acquisition.

c.) Given that XYZ issues new debt of $50 million initially to fund the acquisition, compute the present value of the interest tax shield for this acquisition.

d.) Given that XYZ issues new debt of $50 million initially to fund the acquisition, compute the total value of this acquisition using the Adjusted Present Value (APV) method.