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Dawson is the CEO of SportsFit Therapeutics, Inc. (SFTI), a sports medicine company with research and treatment center hajor markets across the United States and Europe. Its services are demanded by elite athletes in a wide range of sports n tennis to golf to swimming, and by sports teams in MLS, MLB, and the NFL SFTI has the following capital structure 24 0,07882716yrrN=32PV=1141.12Pm+=47,2F - Bonds: Twelve years ago, the firm issued 28 -year bonds with a $715 million face value. These 9.45% semi-annuai bonds pay interest sem Common Stock: The firm has 65 million shares authorized and 42 million shares outstanding. They have a book vic of $4.35. The firm recently paid a dividend of $8.34 per share, and the dividends are expected to grow 7.55% annually. The firm's beta is 1,95 . Div 0 - Preferred shares: The firm also has 4.75 million 12.8% preferred shares outstanding. While these shares currently trade at $97.92, they have a par value of $100. Other information: the current yield to maturity on one-year T-Bills is 5.25%. The market return is 13.21%. SFII's corporate tax rate is 35%. N=52,PV=7,1114.1192PMT=47.25PV=1000,1=.0816 Calculate the cost of Capital for each type of security in the firm's capital structure (show all work): a. What is SFII's cost of debt? =0.0798278.16%1114.1192215,000=$796,595,228 10.) Using CAPM, what is SFII's expected cost of equity? .16%.0525+1.95(.1321.0525.0525.0725=0.09735020.772% (25)1602Give ventheinformationprovidedabove,whatisthefirmscostofpreferred?$12.8/0.09160Z=139.734914.75m=$663,710,8$12.80$97.92 (10) Enterprise Value and its components (show all work): What is its debt capitalization? $796,595,228 .067731 $67.84 PEn symor. o b What is SFTI's market capitalization? 857,773.8 .87583 C. What is its preferred capitalization? No wonK, INCONnoar 4653,740,405.516 d. What is SFTI's enterprise value? .056435 Calculate SFTI's weighted average cost of capital (show all calculations)