16.7 , 16.9 please

16.7 M&M Proposition 1: The weighted average cost of capital for a company, assuming all three Modigliani and Miller assumptions hold, is 10 per cent. What is the current cost of equity capital for the company if the cost of debt for the company is 8 per cent, given that the com- pany is financed by 80 per cent debt? 16.8 Interest tax shield benefit: Sterling Ltd has $350 million of debt outstanding at an interest rate of 9 per cent. What is the amount of the tax shield on that debt, just for this year, if Sterling is subject to a 30 per cent company tax rate? 16.9 Interest tax shield benefit: Cairns Ltd has $500 million of debt outstanding at an interest rate of 9 per cent. What is the present value of the tax shield on that debt if it has no maturity and if Cairns is subject to a 30 per cent company tax rate