Can anyone help me with this? Also, can you please show how you get your answer?

Consider the following: Table 1 Cost of acquisition: S3.0 billion Cash flow, 1 Cash flow, 2 Cash flow, 3 Cash flow, 4 Cash flow, 5 Table 2. Debt Equity Ta Tax rate Trea Beta with SPX Return on SPX 0.40 S550 million S700 million S825 million S1.2 billion S1.5 billion t cost of debt l 12.00% 30% 4.0% rate 10.0% Use the cash flows associated with Table 1 (there is no salvage value after year 5) and calculate the firm's cost of capital using the information in Table 2. Find the NPV and IRR on the proposed acquisition. 3. You are analyzing an acquisition using either 100% debt or 100% equity as the only two financing solutions. You perform an analysis of capital sources and the impact on the firm's earnings for the S3 billion deal. ABC Inc. currently has 800 million shares outstanding and a market price of $50 per share. The firm has a cost of debt (before tax) of 7 percent. The target firm has S800 million in debt carrying a 12% rate that will be assumed by ABC Inc. You run an analysis that includes a five-year projection for the combined company to determine EBIT in Table 3. Using either all equity ($50 issuance price) or all debt (7%) to buy Target Co., assuming no flotation costs in this model, and assuming 30% tax rate, when is the deal accretive to earnings and how should the firm finance the acquisition? Table 3. Combined projection of EBIT for ABC Inc and Target Company & EPS for ABC Alone Without Acquisition Year2 300 Year 3 5,194,530 Year Year 1 4.455,000. Year 0 Year S Combined EBIT 4.500,000 Without ABC Acquisition