Book Co. has 1.6 million shares of common equity with a par (book) value of $1.20, retained earnings of $30.4 million, and its shares have a market value of $50.13 per share. It also has debt with a par value of $18.2 million that is trading at 101% of par. a. What is the market value of its equity? b. What is the market value of its debt? c. What weights should it use in computing its WACC? a. What is the market value of its equity? The market value of the equity is $ million. (Round to two decimal places.) Avicorp has a $11.3 million debt issue outstanding, with a 6.2% coupon rate. The debt has semi-annual coupuns, ule next coupon is due in six months, and the debt matures in five years. It is currently priced at 93% of par value. a. What is Avicorp's pre-tax cost of debt? Note: Compute the effective annual return. b. If Avicorp faces a 40% tax rate, what is its after-tax cost of debt? Note: Assume that the firm will always be able to utilize its full interest tax shield. a. The cost of debt is \% per year. (Round to four decimal places.)