Mojito Mint Company has a debtequity ratio of .30. The required return on the companys unlevered equity is 13 percent, and the pretax cost of the firms debt is 7.8 percent. Sales revenue for the company is expected to remain stable indefinitely at last years level of $18,300,000. Variable costs amount to 60 percent of sales. The tax rate is 34 percent, and the company distributes all its earnings as dividends at the end of each year.

c-3.	What is the value of the companys debt? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Value of debt

$

d.	Use the flow to equity method to calculate the value of the companys equity. (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Value of equity

$