1. The book value of equity of a firm is $20 million and the market value of equity is $71 million. The face value of debt of the firm is $27 million and the market value of debt is $98 million. What is the market value of assets of the firm?

Give answer in millions without commas or dollar signs. Do not include the words millions. For example, write '$34 million' as 34

2. The total market value of General Motors (GM) is $10 billion. GM has a market value of $7 billion of equity and a face value of $10 billion of debt. What are the weights in equity and debt that are used for calculating the WACC?

a. 0.7, 0.3

b. 0.6, 0.4

c. 0.3, 0.7

d. 0.2, 0.8

3. The outstanding debt of Home Depot has a yield to maturity of 0.1. The tax rate of Home Depot is 0.11. What is the effective cost of debt of Home Depot?

Round to four decimal places. Give answer in decimal form without commas or dollar signs.