a. The market value of Chaka Corporation's common stock is $20million and the market value of its risk-free debt is $5million. The beta of the company's common stock is 1.25 and the market risk premium is 8%. If the treasury bill rate is 5%, what is the company's cost of capital

b. A wealthy are collector has decided to endow her favorite art museum by establishing funds for an endowment which would provide the museum with $1,000,000 per year for acquisitions in perpetuity. The art collector will give the endowment upon her fiftieth birthday, 10 years from today. She plans to accumulate the endowment by making annual end-of-year deposits into account. The rate of interest is expected to be 6% in all future periods. How much the art collector deposit each year to accumulate to the required amount?