How did you get 7999688?

Reading 36 Cost of Capital Market value of debt: FV $10,000,000, PMT $400,000, N 10, 13.65%. Solving for PV gives the answer $7,999,688.) ? Market value of equity: 1.2 million shares outstanding at $10- $12,000,000 Market value of debt Market value of equity Total capital $7,999,688 12,000,000 $19,999,688 40% 60% 100% To raise S7.5 million of new capital while maintaining the same capital structure, the company would issue $7.5 million x 40% $3.0 million in bonds, which results in a before-tax rate of 16 percent. r(1-1)-0.16(1-0.3)-0.1 12 or 11.2% ,,-0.03 + 2.2 (0.10-0.03) 0.184 or 18.4% Reading 36 Cost of Capital Market value of debt: FV $10,000,000, PMT $400,000, N 10, 13.65%. Solving for PV gives the answer $7,999,688.) ? Market value of equity: 1.2 million shares outstanding at $10- $12,000,000 Market value of debt Market value of equity Total capital $7,999,688 12,000,000 $19,999,688 40% 60% 100% To raise S7.5 million of new capital while maintaining the same capital structure, the company would issue $7.5 million x 40% $3.0 million in bonds, which results in a before-tax rate of 16 percent. r(1-1)-0.16(1-0.3)-0.1 12 or 11.2% ,,-0.03 + 2.2 (0.10-0.03) 0.184 or 18.4%