Marcus Corporation is currently all equity financed and has a value of $$85$ million. Investors currently require a return of $19\mathrm{.}3$ percent on common stock. Marcus has a marginal tax rate of $25$ percent. Marcus plans to issue $$10$ million of debt with a return of $4\mathrm{.}4$ percent and use the proceeds to repurchase common stock.

What will be the value of the firm after the debt issue? Please state your answer in millions rounded to two decimal places.

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Correct response: $87\mathrm{.}5+-0\mathrm{.}01$ million

This question has $4$ parts, so you will be clicking verify $4$ times.

Given that the value of the firm after the debt issue will be $$87\mathrm{.}5$ million, what will be the value of the equity after the debt issue? Please state your answer in millions rounded to two decimal places.

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Correct response: $77\mathrm{.}5+-0\mathrm{.}01$ million

Given that the value of the equity after the debt issue will be $$77\mathrm{.}5$ million, what will be the expected return on the stock after the debs issue? Enter your answer as a percentage and round to $2$ decimal places. Do not enter the percentage sign as part of your answer.

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Correct response: $20\mathrm{.}74+-0\mathrm{.}02$

Given that the expected return on the stock after the debt issue will be $20\mathrm{.}74\%,$ what will be the Weighted Average Cost of Capital after the debt issue? Do not enter the percentage sign as part of your answer.

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$(8)$