GenuinelCare is a company that offers residential health care services. The company has $200 million in interest-bearing debt (in book value and market value terms). The firm has 25 million shares trading at $ 10 a share, and the unlevered beta of firms in the health care business is 0.6. The firm has a current rating of B, with a default spread of 0.05 over the risk free rate. The risk free rate is 0.045, the market risk premium is 0.06 and the corporate tax rate is 40%.