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1. Brian's Bull Shoals Bait and Tackle has 5,000,000 shares outstanding at a price of $80/share and a beta of 0.8. The Expected Return on

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1. Brian's Bull Shoals Bait and Tackle has 5,000,000 shares outstanding at a price of $80/share and a beta of 0.8. The Expected Return on the Market is 12% and the Risk-Free Rate is 3.00%. They also have one bond issue outstanding that has a face value of $100,000,000, matures in 10 years and trades in the market at 98 (98% of Par). Bonds of similar companies with similar maturities have a yield spread of 1.50%. The company's tax rate is 35%. Using this information, please answer the following questions: a. What is the cost of debt (Rd)? b. What is the cost of equity (Re)? c. What is the market value of the debt (MVd)? d. What is the market value of the equity (MVe)? e. What is the value of the firm (MVd + MVE) f. What is the weight of debt (Wd)? g. What is the weight of equity (We)? h. What is the company's WACC

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