ABCD company has the following book-value based Balance Sheet: Total Assets $ 1,000,000 8% Debt $ 400,000 9% Preference Share $ 100,000 Equity 35 500,000 Total Assets $ 1,000,000 Total Liabilities and equities $ 1,000,000 The bond has a par value of $1000, will mature in 5 years, and has YTM of: The preference share which has a par value of $100 is currently trading at: $ 125.0 There are 100,000 common shares outstanding and market price per share is: The riskfree rate is 4%, market return is: Beta of the ABCD stock is: Corporate taxrate is: a. Find the market value of each type of capital. [6 marks] b. Compute the market value based weights for each source of capital. [6 marks] c. Compute the Weighted Average Cost of Capital (W'ACC). [6 marks] (1. If the company is evaluating a new investment proposal which is in the similar risk class as the company, what shou] the hurdle rate? [2 marks]