If the market risk premium is 5.8% and company has the following: Common Stock: 6850000 shares outstanding, selling at $28 per share, beta 1.6 Preferred Stock: 350,000 shares outstanding, 4.8% yield, selling at $88.5 per share Debt: 138000 5.5% semi annual bonds outstanding, par value $1000 each with 12 years to maturity, selling at 117% of par Tax Rate: 30%

a) Calculate the company`s market value

b) Calculate the percentage of the market value capital structure that is debt