Insert Draw Page Layout Formulas Data Review View Developer Aert X G Calibri (Body) 11 General B O A $ % en recovered workbooks? Your recent changes were saved. Do you want to continue working where you lef F G H D Please leave column A blanca domy marking in that com Long Answer- Question 6 (7 marks) Rose Patel Industries is considering the acquisition of another form in its industry for $100 million. Assume Rose Industries will maintain a constant debt-equity ratio for the acquisition Expected increase in free cash flow year 1 $ 5.00 million Expected increase in free cash flow after year 1 4.00N Marginal tax rate 40.00% Cost of debt 5.50% Cost of equity 9.00 Current Debt-to-equity ratio Note that If you don't have any data in the cells above, It is likely because you havent input your student number in the yellow highlighted cell on the cover tab. 1:1 Required: What is Rose's unlevered cost of capital? (2 marks) b If Rose issues new debt of 50 million initially to fund the acquisition, what is the total value of the acquisition using the APV method