You are planning to value Arcosa, Inc., an infrastructure$-$related business that was spun off from Trinity Industries, Inc. in $2018.$ You are using a WACC valuation approach: for the first two years, the unlevered cash flows are expected to grow at $4$ percent. After the $2$nd year, the growth in unlevered cash flow slows to $2$ percent and continues at this rate forever. The financial information you have assembled for your valuation is as follows:

The company has $2$ billion shares outstanding

The market value of its debt is $$4$ billion

The unlevered cash flow $($UCF$)$ is currently $$1\mathrm{.}2$ billion

The levered equity beta is $0\mathrm{.}90$; the market risk premium is $5\mathrm{.}0$ percent; the risk$-$free rate is $5\mathrm{.}5$ percent

The before$-$tax cost of debt is $7\mathrm{.}0$ percent

The tax rate is $40$ percent

To calculate the WACC, you assume a weighting of $25$ percent of debt in the capital structure

The UCF growth rate is $4$ percent for the first $2$ years, and $2$ percent thereafter $($as noted above$).$

There is no cash or marketable securities on the balance sheet.

$1.$ Calculate the WACC

$2.$ Calculate the value of the firm

$3.$ Calculate the total market value of equity, and the value per share