Assume LOGI Co. is a public listed company, having 20 million number of shares, trading at $15 per share. The outstanding debt has a book value of $150 million equal to its market value and the equity has a book value of $350 million. Several other comparable companies in the same industry all have different level of debt, with an average beta of 1.6, and industry average debt to equity ratio is 40%. Current market risk premium is around 6%. The tax rate for all company is 30%. Financial analysts forecast LOGI Co.s full year EBIT at 50million, will be released tomorrow, with an interest payment at 5.55 million. The current 10-year government bond is yielding at 3%, and LOGI Co. has an BB+ rating. Question A. Calculate the companys current cost of capital. (5 marks) Question B. Assume that LOGI Co. is already in a stable growth phase and have been maintaining a dividend payout ratio of 40% (the rest will be retained in company). Based on financial analysts forecast tomorrow, please calculate LOGI Co.s terminal value and the theoretical share price tomorrow.