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Amazing company Ltd . has 8 . 2 million shares of common stock outstanding and 1 9 5 , 0 0 0 semi - annual

Amazing company Ltd. has 8.2 million shares of common stock outstanding and 195,000 semi-annual bonds outstanding with a face value of $1,000 and a 9.5% coupon rate. The common stock currently sells for $208 per share and has a beta of 1.02, and the bonds have 18 years to maturity and sell for 91% of face value. The market risk premium is 5.3%, T-bills (risk-free) yield 5%, and the company's tax rate is 38%.
a) What is the firm's market value capital structure?
b) Estimate the firm's cost of equity, and after tax cost of debt.
(c) Estimate the company's total cost of capital.

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