SBC Inc. is a profitable firm (tax rate of 30 percent) that wants to determine its weighted average cost of capital (WACC). Currently, SBC has 40,000 annual bonds with 6.75 percent coupon rate ($1,000 par) with 18 years to maturity which currently sell for $800 each. The bonds have a BBB rating The fum has no preferred stock. SBC has 1.5 million shares of common stock (par=$18) SBC beta is 1.3 and the current market risk premium is seven percent while the T-bill return is 4 percent. SBC common stock is currently trading at $28. The stock over bond premium is 5.8 percent. a. Find the market value of the firm b. Find the weights to be used in the calculation of WACC C. Find the required return for SBC debt d Using the stock over bond approach, find the required return for SBC equity