let the C=5

only part E! needed

3. The MacKinnon Corp. is valuing a potential target company (Richards Co.) that is thinly traded. A company similar to Richards has a Debt-Equity ratio of .1xC and a beta of 1.4. Both companies have a tax rate of 30%. a. Calculate the unlevered beta. b. Calculate the appropriate levered beta to use if Richards Co. has a 25% debt-equity ratio. c. Calculate the cost of equity given a risk-free rate of 5 percent and a market risk premium of 6.5%. d. Given a cost of debt of 8% and a tax rate of 30%, calculate the Weighted Average Cost of Capital. e. MacKinnon estimates that if Richards is acquired the free cash flows (including synergies) will be $4 million, $5 million, and $6 million in Years 1 through 3, after which the free cash flows will grow at a 3% rate. What is the total value of Richards to Mackinnon? If Richards currently has $10 million in debt, and 1 million shares outstanding, what is the highest price per share that MacKinnon Corp. can offer for Richards shares