Company Inc has 15 million shares outstanding each selling at $22 per share. The market value of debt represents 30% of the firms capital structure and the yield to maturity on debt is 9%. The corporate tax rate is 30%.

a. What is the market value of equity, the market value of debt, and the market value of the whole firm?

b. Assume the leveraged firms cost of equity is 15%. What is the firms weighted average cost of capital (WACC)?

Do not use excel to calculate - Please show all working step by step.