A firm has a cost of equity of $11\mathrm{.}9\%.$ The YTM on the firm's bonds is $6\mathrm{.}4\%.$ The firm's tax rate is $21\%.$ The firm's bonds sell for $103\mathrm{.}5($par value is $$1,000).$ The firm's debt has a book value of $$417,000$ and the firm's total assets have a book value of $$955,000.$ The firm's market$-$to$-$book ratio is $2\mathrm{.}83$ times.

a$.(6$ pts$.)$ Calculate the firm's book value of equity.

b$.(6$ pts$.)$ What does the market$-$to$-$book ratio imply about the firm's market value of equity? Calculate the firm's market value of equity.