Q#$1.(15$ pts$.)$ Assume that your company currently has the following characteristics:

$\frac{D}{V}=\mathrm{.}30,Rf=4\%$

$\frac{E}{V}=\mathrm{.}70$ Market Risk Premium $=5\mathrm{.}5\%$

Beta $=1\mathrm{.}30$ tax rate $=20\%$

In addition, you obtain the following data about the company's bond. The company's $20$ year $$1000$ par value bond is trading in the market place at $$950.$ The bond carries a coupon rate of $7\%$ and pays interest semi$-$annually.

A$.$ Estimate the current cost of debt and equity of the company.

B$.$ Estimate the WACC of the company.