DEEPON CORPORATION HAS 7.8 MILLION SHARES OF COMMON STOCK OUTSTANDING 155,000, SEMI ANNUAL BONDS OUTSTANDING WITH A FACE VALUE OF $1000 AND A 7.5% COUPON RATE.The common stock currently sells for $342 per share and has a beta of 1.18 and the bondshare 13 years to maturity and sells for 98%of face value. The Market risk premium is 6.9% T bills (risk free) yields 5% of the company tax rate is 40%.

a) what is the firms makrket value capital structure

b) Estimate the firms cost of Equity and after tax cost of debt.

c) estimate the companys total cost of capital