Problem #3: Company A (100% equity) is valued at $15,000,000 and Company B (which has $3,000,000 in long debt with an interest rate of 8%). The tax rate is 30%. Both A & B have identical after-tax profit $1,200,000 and it is given that both have identical operating risk profile and identical pretax income. Calculate:

1. Value of B
2. Capital Structure Mix of B
3. Cost of capital for A & B