Hello, please can you solve this 11st problem's A and B?

11) Clarix Inc. is a publicly traded company that operates in two businesses it generates 600/0 Of its value from entertainment and 40% from electronics. The company has 100 million shares trading at S 8/share, has S 400 million (market and book value) in interest bearing debt and lease commitments Of S 80 million each year for the next 6 years. The current levered beta for the firm is 1.15 and the current bond rating for the firm is BBB, which corresponds to a default spread Of 1.50/0 (Default spread is the premium over the risk-free rate to compensate for default risk Of the firm). The US-treasury bill rate is 3.5%, the market risk premium is 5% and the marginal tax rate is 40%. a. Estimate the current cost Of capital for the firm b. Now assume that the firm plans to sell its electronics business at fair value and use 75% the proceeds to pay a special dividend to equity investors and 25% Of the proceeds to retire interest bearing debt. If the unlevered beta Of the electronics business is 0.90 and this transaction will lower the rating to BB (with a default spread Of 3%), estimate the cost Of capital after the transaction.