Paper company, Paper King Inc. produces old fashioned notebooks. The company has long-term debt financed by a 10 -year bond with the face value of $100,000 at the coupon rate of 7.5% and the required rate of return is 10.55%. Paper King Inc. also has 10,000 common equity which currently trading at $20 each. The risk-free rate is 4.5% whereas the market risk premium is 7%. The equity beta is 1.5 , the beta of debt is 0.1 . a) What is the price of the bond? ( 5 points) b) What is the required return on equity? ( 5 points) c) What is the firm value and its capital structure? (5 points) d) What is the weighted average cost of capital, given that the corporate tax rate is 30% ? (5 points)