Get-A-Life Inc. has the following securities outstanding:

• The firm has outstanding an issue of 11%, semi-annual coupon bonds, par value $1000 with 5 years remaining to maturity. The bonds currently sell at 110% of par. There are 10,000 bonds outstanding.

• The firms common stock is currently selling at $50 per share. ValueLine reports the firms beta as 1.5. The t-bill rate is 6% and the return on the S&P 500 is 11%. The firm's last dividend (Do) was $2.00 per share and dividends are expected to grow at a rate of 10% annually indefinitely. There are 2,000,000 common shares outstanding.

• The firm has no preferred stock in its capital structure.

• The firms tax rate is 40%.

Questions to be answered:

1. Calculate the costs of the components to be used in the WACC. [LT Debt and Common Equity (take average of 2 methods for common equity)]
2. Calculate the firms market value capital structure.

3. Calculate the firms WACC.