Huxley Horticulture Ltd has $200,000 (face value) of 10-year bonds outstanding.  Each $1,000 bond carries a 5% coupon, paid semi-annually, and is currently selling in the market for $950.  They also have 100,000 common shares outstanding.  The shares just paid a dividend of $2.50.  The current yield on Treasury Bills is 2% and the return on the market 10%.  Field Farms has a Beta = 2, an ROE = 14%, a tax rate = 30% and a payout ratio = 60%.  

What is the cost of debt for Huxley Horticulture?

What is the market value of Huxley Horticulture's debt?

What is the required return on Huxley Horticulture's equity, computed using the CAPM?

What growth rate does Huxley Horticulture expect, using the formula g =  ROE x Plowback

What is the market value of one common share?