Alt 7 Page 1: 1 Page 2: 2 V Page 3: 3 Page 4: 4 (11 points) V Saveu Twin Cities Corporation uses bonds, preferred stocks, and common stock foarce. The cat structure of the company and required returns are listed below. Page 5: 5 Bonds Preferred stock Common stock Page 6: Capital Structure 30% 10% 60% Required Return 6% 7% 12% Other financial information (dollars in millions) Market value of the debt-$300 Market value of the preferred stock = $100 Net Income available to common shareholders- $90 Interest expenses- $25 o Preferred dividends = $7 Depreciation = $30 o Investment in fixed capital = $60 Investment in working capital = $15 Net borrowing = $25 Tax rate=21% Stable growth rate of FCFF = 5% Stable growth rate of FCFE-6% a) Calculate Twin Cities Corporation's WACC. (2 points) b) Calculate the current value of FCFF (FCFF). (2 points) c) Based on single-stage FCFF model, what are the total value of Twin Cities Corporation and the value of its equity, respectively? (3 points) d) Calculate the current value of FCFE (FCFE) (2 points) MacBook Pro 8