You are running a major tech company, Technology

Innovation Inc. $($TIC$),$ and are thinking about investing in

electric vehicles $($EV$)$ through a new solely owned start$-$up$,$

TIC$2.$ The new endeavor requires an initial investment of

$$50\mathrm{.}00$ billion $($year $0)$ and yields a perpetual pre$-$tax earnings

of $$10\mathrm{.}00$ billion per year, starting the following year $($year $1).$

TIC$2\text{'}$s tax rate is $20\mathrm{.}00\%.$

TIC is currently all equity financed and can issue new equity

to finance the initial investment of TIC$2.$ It can also raise new

capital through TIC$2$ to fund the investment. There is a listed

company, eCar, which is in the EV business. You have the

following data:

Assume that CAPM is valid, the risk$-$free interest rate is

$1\mathrm{.}24\%,$ the risk premium on the market portfolio is $6\mathrm{.}89\%,$ and

eCar keeps its debt$-$to$-$value ratio constant.

For parts $($A$)($C$),$ suppose you finance the initial investment by issuing equity through TIC$2.$

$($A$)$ What is the after$-$tax cash flow of TIC$2$ each year? $...($IN BILLION DOLLARS$)$

$($B$)$ What is the discount rate you should use to value TIC$2$ after$-$tax cash flow? $...\%$

$($C$)$ What is the NPV of TIC$2?...($IN BILLION DOLLARS$)$

Suppose that TIC has more than $$50\mathrm{.}00$ billion of cash sitting on its balance sheet, earning $1\mathrm{.}24\%$ interest rate, and you can use the cash to fund TIC$2$s initial investment without impacting TIC$$s current business.

$($D$)$ If you choose to do so$,$ what should be TIC$2$s NPV$?...($IN BILLION DOLLARS$)$

For parts $($E$)($G$),$ suppose you finance the initial investment by issuing both debt and equity through TIC$2.$ The income from TIC$2$ can cover a total interest payment of $$1\mathrm{.}00$ billion per year with no risk. Therefore, you issue a risk$-$free perpetual bond, on which TIC$2$ will pay an annual interest of $$1\mathrm{.}00$ billion.

$($E$)$ What is the tax shield generated by using debt each year? $...($IN BILLION DOLLARS$)$

$($F$)$ What is the present value of interest tax shields? $...($ IN BILLION DOLLARS$)$What is the NPV of TIC$2$ under this financing strategy?

$($G$)$ What is the NPV of TIC$2$ under this financing strategy? $...($IN BILLION DOLLARS$)$

Please help me to answer all question $($from B to G$),$ I got question A correct but start from part B i got it wrong $($my answer $8\mathrm{.}13\%).$ Please DON'T USE CHATGPT as it yield incorrect answer or else don't attempt to answer it if you don't know $($be considerate$)$; i will report you to the chegg.