A company has $100 million book value of debt. You look on Morningstar FINRA and you see that there is a single bond issuance, trading at $110 (on a face value of $100). It is a 10 year bond, with 4.5% annual coupon. Use this information to answer the next two questions. What is the market value of the debt , in millions? What is the yield to maturity of the bond (in percentage - so if the YTM is 7.8%, enter 7.8) - note that this is also the cost of debt for this firm.

The market capitalization of this company is $140 million, it's beta is 0.75, the risk free rate is 2% and the market risk premium is 6%. Use this (and the information from the previous questions to answer the following four questions). What is the cost of equity capital (in percentage so if the answer is 3.4%, enter 3.4)?

What is the weight of debt in this firm? (answer as a percentage, same as before)

What is the weight of equity in this firm's capital structure? (answer in percentage, so 33% would be entered at 33)

Assume the firm has a tax rate of 20%, what is the WACC of the firm? (answer as a percentage)

The company above is trying to decide on whether to start a project. The project costs $1 million and has expected cashflows of $75,000 a year forever. What is the NPV of the project (answer in dollars, so if the answer is a negative NPV of $57,000, enter -57000)?

What is the IRR of the project (answer as a percentage)

What is the payback period of the project? (answer in years)