(RG). Assume the company's a) Given the following information for tax rate is 20 per cent. Debt: 40,000 7 per cent coupon bonds outstanding, 100 par value, 20 years to maturity, selling for 103 per cent of par; the bonds make semi-annual payments. Equity: 90,000 shares outstanding, selling for 58 per share; the beta is 1.10. Market: 8 per cent market risk premium and 6 per cent risk-free rate. i) Find the market value of debt. ii) Find the market value of equity. iii) Find the market value weights of debt and equity. iv) Show that RG's cost of equity is 14.8%. v) Given that the yield to maturity on the bonds is 6.72%, find the after tax cost of debt. vi) On average what does RG's capital financing cost? vii) Say that RG wanted to pursue a project in wind energy, an industry which currently (and for the foreseeable future) a lot more volatile than gas. Would your answer to part vi be an appropriate discount rate to use for the project? Explain