hand calculations

Asbasta International has an unlevered cost of capital of 8%, a tax rate of 35%, and expected earnings before interest and taxes of $3.5 million. The company has $4 million in bonds outstanding that have a 6.5% coupon and pay interest annually. The bonds are selling at par value. Assume there is no cost of financial distress and general M&M assumptions apply. a) What is the value of the unlevered company? (2 marks) b) What is the value of the levered company? (2 marks) c) What is the cost of equity? (5 marks) d) What is the weighted average cost of Capital (WACC) (2 marks)