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please solve all parts a b c d clearly and correctly and take clear photo of solution showing all necessary explanation and calculations (5 points)

please solve all parts a b c d clearly and correctly and take clear photo of solution showing all necessary explanation and calculations image text in transcribed
(5 points) You are given the following information about the balance sheet of a company (in millions): - The firm faces the 40% tax rate. - The market value of the debt is 80% of its face value. This debt takes the form of bonds with a coupon rate of 10%. It is currently rated AA and is selling at a yield of 12%. - One share of the company's equity has a market price of $80. There are 50 million shares outstanding. - The firm's equity has a beta of 1.2. - The risk-free rate is 8%, the equity market risk premium is 13.5%. Answer the following questions: (a) What is the book value of equity? (b) What is the market value of equity? (c) What are the firm's market and book leverage ratios? (d) What is the firm's current cost of capital

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