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3.- Bola Inc., has equity with a market value of 50 million and debt with a market value of 10 million. Bola has bond with

3.- Bola Inc., has equity with a market value of 50 million and debt with a market value of 10 million. Bola has bond with a YTD of 4 percent per year, and the expected return on the market portfolio is 10 percent. Bola has a Beta of 1, and the tax rate is 25%, the company has a huge tax loss carry forward. a) What is the Debt/asset ratio? What is the Debt-to-Equity ratio? b) What is the firm's weighted average cost of capital?

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