Q.2 You are trying to estimate the cost of capital for Spyriakos Shipping, and have collected the following information: -The firm has $750 million in interest-bearing debt on its books, on which it pays $ 40 million in -There are 200 million annual interest expenses. The weighted average maturity of the debt is 5 years. The bond rating for the firm is A-, and the default spread over the T.Bond rate is 2%. shares outstanding, trading at $ 10 a share. -The unlevered beta for other shipping firms is 0.80. -The ten-year T.Bond rate is 5.2% and the market risk premium is 5.17%. -The marginal tax rate is40%. a. Estimate the market value of the interest-bearing debt. b. Estimate the cost of equity for the firm. c. Estimate the cost of capital for the firm