If Smolinski, Incorporated, were an all$-$equity company, it would have a beta of $1\mathrm{.}05.$ The company has a target debt$-$equity ratio of $\mathrm{.}40.$ The expected return on the market portfolio is $11$ percent and Treasury bills currently yield $3\mathrm{.}5$ percent. The company has one bond issue outstanding that matures in $13$ years, has a coupon rate of $5\mathrm{.}6$ percent, and makes semiannual payments. The bond currently sells for $$1,060.$ The corporate tax rate is $21$ percent.