You have a new project: you are planning to start a new company. An old and established company, Sander Inc., has the same type of fixed assets and working capital you plan to use in your new company, and its products are very similar to the ones you think to produce (hence the two firms assets have very similar systematic riskiness and return). Sanders assets are worth 148,000,000. Sanders debt is worth 103,000,000, it is riskless and the company keeps a constant debt-to-equity ratio. Sanders expected return on equity is 12.00% and the return on debt is 4.00%. For your new project you will keep a constant, perpetual and risk free debt of 90,000,000. Your assets will require an initial investment of 85,000,000 and will be depreciated straight line over 5 years. After that, there will be no more capital expenditure. The depreciation tax shield is as risky as debt. The project will produce an expected EBITDA next year of 14,250,000 and will grow perpetually at a 3.20% rate. The corporate tax rate is 30%. a) Using the information you have about Sander, compute the expected return on unlevered equity for your new company? [10 Points] b) What is market value of the assets of your new company? [10 Points] c) What is the expected return on companys levered equity? [5 Points]