You are a conservative investor who is considering investing in $$BAN$,$ a small film company. You like the intrinsic valuation approach and want to calculate BAN$$ weighted average cost of capital and then perform a discounted cash flow analysis. You note that the equity market risk premium is $5\mathrm{.}8\%.$ The risk free rate is $2\mathrm{.}5\%$ and the tax rate is $35\%.$ You feel that BAN Films is riskier than the CAPM would indicate due to its small size and believe it has a size risk premium of $1\mathrm{.}2\%.$ You have the following information about BAN Films:

$$ Bonds: BAN Films has two bonds as outlined below:

o Bond One: six year maturity, $$1,000$ face value semi$-$annual coupon bond with a coupon of $1\mathrm{.}73\%$ and a yield to maturity of $4\mathrm{.}23\%.$ BAN Films has $25,637$ of these bonds outstanding.

o Bond Two: is a coupon bond that pays annually and has nine years to maturity. The coupon rate is $2\mathrm{.}75\%,$ its yield to maturity is $4\mathrm{.}78\%$ and its face value of $$1,000.$ BAN Films has $7,864$ of these bonds outstanding.

$$ Equity: BAN Films has $4,125,876$ common shares outstanding and its stock price is $$3\mathrm{.}56.$ BAN Films$$ beta is $3\mathrm{.}1$ and its Shareholder$$s Equity from the balance sheet is $$9\mathrm{.}3$mm$.$

$$ Unlevered Free Cash Flow as per the following table:

a$)$ Calculate BAN Films$$ weighted average cost of capital. Please show all your work and round to at least $2$ decimal points. $(15$ Marks$)$

b$)$ Perform a discounted cash flow analysis to determine what the intrinsic value of BAN Films is on a per share basis. Use the above $5$ years of unlevered free cash flow projections and the perpetuity growth rate method to calculate the company$$s terminal value. You believe BAN Films will grow into perpetuity at a $1\mathrm{.}25\%$ growth rate. You note that BAN Films has cash of $$1,465,264.$ Please show all your work and round to at least $2$ decimal points$).(7$ Marks$)$