Need help with the following problems

Read the assigned article, "Are You Paying Too Much for That Acquisition?"

complete the following problems.

1. Problem 7.11 (Show calculations for a, b, and c.)
2. Problem 7.12 (Show calculations for a and b.)

Problem 7.11 ABC Incorporated shares are currently trading for $32 per share. The firm has 1.13 billion shares outstanding. In addition, the market value of the firm's outstanding debt is $2 billion. The 10-year Treasury bond rate is 6.25%. ABC has an outstanding credit record and has earned a AAA rating from the major credit-rating agencies. The current interest rate on AAA corporate bonds is 6.45%. The historical risk premium over the risk-free rate of return is 5.5%. The firm's beta is estimated to be 1.1, and its marginal tax rate, including federal, state, and local taxes, is 40%. a. What is the cost of equity? Answer: 12.3% b. What is the after-tax cost of debt? Answer: 3.9% c. What is the WACC? Answer: 11.9%. Problem 7.12 HiFlyer Corporation currently has no debt. Its tax rate is 0.4, and its unlevered beta is estimated by examining comparable companies to be 2.0. The 10-year bond rate is 6.25%, and the historical risk premium over the risk-free rate is 5.5%. Next year, HiFlyer expects to borrow up to 75% of its equity value to fund future growth. a. Calculate the firm's current cost of equity. Answer: 17.25% b. Estimate the firm's cost of equity after the firm increases its leverage to 75% of equity. Answer: 22.2%