You are working part-time in an investment company as an intern substituting junior investment and research analyst in January-May 2020. The company earns money by investing heavily into the shares of the companies that go public by subscribing for the shares, buying them for the offering price and then selling them in the market. Your company wants to invest a lot into Wow Inc. shares that goes public in May 2020. The offering price is $29 per share. You collected the following information about the company and the market: Estimated credit rating of Wow Inc. by the credit rating agency: C Average Yield-to-Maturity of C-rated bonds by the credit rating agency:9% Risk-free rate: 1%. Expected market portfolio return: 10% Estimated beta of equity of the firm: 1.5 Proportion of equity in capital structure: 75% Effective expected tax rate on corporate income: 35% Number of shares issued: 2,000,000,000 (2 billion) Some data from the financial statements of Wow Inc., all in $ millions: As at Item As at 30/04/2019 30/04/2020 Cash and marketable securities 4.400 6.400 Interes expense 514 737 Share capital 6.130 6.800 Dividends 0 0 All interest-paying debt 13.000 16.900 Calculate the expected return of Wow Inc, according to CAPM theory. Calculate the Weighted Average Cost of Capital of Wow Inc. Calculate the Financial Cash Flow of the company in 2019 (for the fiscal year ending at 30/04/2020) Calculate the Free Cash Flow of the company in 2019 (yes, you can calculate it here even though the detailed data is not available). Your boss tells you that the estimated Enterprise Value (EV) of the firm is $80,000.000.000 (eighty billion dollars). Calculate the expected fundamental price (the price your firm has estimated) of a share, Should your firm subscribe and buy the shares of Wow Inc, at the offering price