Equity shares outstanding Stock price per share Yield to maturity on debt

Book value of interest$-$bearing debt

Coupon interest rate on debt

Market value of debt

Book value of equity

cost of equity capital

Tax rate

$20$ million

$$30$

$7\mathrm{.}5\%$

$$320$ million

$3\mathrm{.}5\%$

$$200$ million

$$320$ million

$10\mathrm{.}0\%$

$35\%$

Burgundy is contemplating what for the company is an average$-$risk investment costing $$20$ million and promising an annual ATCF of $$4\mathrm{.}0$ million in perpetuity.

a$.$ What is the internal rate of return on the investment?

Note: Round your answer to $2$ decimal places.

$\backslash$table$[[$Internal rate of return,$20\mathrm{.}00]]$

b$.$ What is Burgunays weighted$-$average cost of capital?

Note: Round your enswer to $2$ decimal places.