Bonds: Three years ago, a firm issued 18-year bonds with a $675 million face value. They pay 9.3% coupon rate, semiannually. Today they trade at 88.44186.

Common Stock: The firm has 42 million shares authorized and 18 million shares outstanding. They have a book value of $6.75. When they were issued, they initially traded at $11. The firm recently paid a dividend of $8.76 per share, and the dividends are expected to grow 7.45% annually. The firms beta is 2.24.

Preferred Shares: The firm also has a 4.5 million 13.5% preferred shares outstanding with a par value of $100. The required return on these shares is 16.5%

Other Information: The current yield to maturity on one year T-Bills is 6% The current market return is 13.4% Corporate Tax Rate is 40%

A) What is the Firms cost of debt?

B) Given the firms beta and the market information, what is the cost of equity?

C) What is the debt capitalization?

D) What is the market capitalization?

E) What is the preferred capitalization?

F) What is the enterprise value?