Bluegrass Mint Company has a debt$-$equity ratio of $\mathrm{.}45$ The required return on the

company's unlevered equity is $13\mathrm{.}6$ percent, and the pretax cost of the firm's debt is $7$

percent. Sales revenue for the company is expected to remain stable indefinitely at last

year's level of $$18,000,000.$ Variable costs amount to $70$ percent of sales. The tax rate is $21$ percent, and the company distributes all its earnings as dividends at the end of each

year.

A$.$ If the company were financed entirely by equity, how much would it be worth?

B$.$ What is the required return on the firm's levered equity?

C$.$ Use the weighted average cost of capital method to calculate the value of the company.

D$.$ Use the flow to equity method to calculate the value of the company's equity