Consider a company whose debt has a market value of $ 60,000,000 and whose shares have a market value of $ 40,000,000 (2 million securities at $ 20). The company pays an 8% interest rate on new debt and has a volatility of 1.35. The corporate tax rate is 35%. Assuming the market return is 11% and the risk-free rate is 2% a) Calculate marquet pemium b) Calculate expected return on stock c) Calculate debt cost (after tax) d) Calculate Weigthed Average Cost of Capital (WACC)