After being the CFO of Mullen Inc. for over $10$ years, you start your own company to directly compete

with Mullen. You want to use Mullen$$s information to estimate your company$$s cost of capital.

Mullen has $30,000$ common stocks outstanding with a price of $$10\mathrm{.}3$ per share. The current dividend is

$$1\mathrm{.}5$ per share and will grow at $3\%$ per year. The market risk premium is $10\%$ and the risk$-$free rate is $4\%.$

Mullen also finances its operations with two bonds. The first bond has $$80,000$ par value, $15\%$ coupon

rate, $12$ years to maturity, and is trading at $120(120\%$ of par$).$ The second bond has $$60,000$ par value,

$10\%$ coupon rate, $15$ years to maturity, and is trading at YTM of $13\mathrm{.}5\%.$ All bonds pay semi$-$annual

coupons. The tax rate is $30\%.$

a$)$ Calculate Mullen$$s cost of equity.

b$)$ Calculate Mullen$$s after$-$tax cost of debt.

c$)$ Calculate Mullen$$s WACC.

d$)$ Calculate Mullen$$s unlevered beta.

e$)$ Calculate your company$$s cost of capital