You have been asked to evaluate the quality of investments at Gardena Inc., a firm that operates in two businesses-cement and steel. You have been provided the following Information on the businesses: Book Value Market Value Unlevered beta of business Cement $500 $900 0.90 Steel $500 $600 1.20 Total $1,000 $1,500 The firm has 100 million shares, trading at $10 a share and faces a marginal tax rate of 40%. The company's bonds have an A rating and a default spread of 2%. The riskfree rate is 4% and the equity risk premium is 5%. a. Estimate the cost of capital for the company. b. Gardena generated $ 100 million in after-tax operating income in the most recent year, estimate the economic value added (EVA) of the company