Your company operates a steel plant. On average, revenues from the plant are $29 million per year. All of the plant's costs are variable costs, and are consistenty 79% of revenues. (Thit includes the energy costs associated with powering the plant which reprosent one quarter of the plan's costs, or an averago of $5,73 million per year) Suppose the plant has an asset beta of 1.29 , the risk-free rate is 4%, and the market risk premium is 4%. The tax pane is 34%, and there are no other costs a. Estimate the value of the plant today assuming no growth. b. Suppote you enter a long-term cortract which will supply all of the plant's energy needs for a fixed cost of $3 milion per year (before tax). What is the value of the plant if you take this contract? c. How would taking the contract in (b) change the plamt's cost of captar? Explain a. Estimate the value of the plant today assuming no growth. The value of the plant today assuming no growth is $ millon. (Round to two decimal places.) b. Suppose you enter a long-term contract which will supply all of the plarkis energy needs for a foxed cost of 3 milion per year (before tax). What is the value of the plant if you take this contract? The value of the plant if you take this contract if millon (Round to two decimal places) c. What is the plant's overal cost of capial It you chose to erfer the contratt in part (b)? The plant's overall cost of capital, i you choose to enter the contract in part (b) is N. (Round to two decimal places.)