Cook Wares has a target debt ratio (debt/value) of 60%. The 10-year bonds have a coupon rate of 8.3% (paid annually) and currently trade for $1125 per bond. The tax rate is 30%. They have the following information on their stock (You will need to fill in the blanks):

Current EPS
Current Dividend
Return on Equity
Current Price
Payout Rate = Div/EPS
Growth = Retention x ROE

a) Calculate the weighted average cost of capital.

b) The firm has a 3-year planning period. The firm expects cash flows of $6M next year, and the cash flows will initially grow at the growth rate. After year 3, they estimate that the cash flows will start to grow at 2% indefinitely. Find the value of the operations.

c) The firm has $8M in cash, $2M in debt and 5M shares outstanding. Find the share price.