The balance sheet of Wisconsin Dairy Products, in millions of dollars, is shown below:

In addition, the following information is provided:

$(1)$ The debt consists of $20-$year, $8\%,$ semi$-$annual, $$1,000$ bonds, presently selling at $$701\mathrm{.}25.$

Floatation costs on new bonds would raise the effective before$-$tax interest cost to $0\mathrm{.}5\%$ above the

yield to maturity on existing debt.

$(2)$ The company has $10$ million shares of common stock outstanding, with a market price of $$30$ a

share. The stock has a beta of $1\mathrm{.}5.$ The risk$-$free rate is $10\%$ and the average market risk premium

is $6\mathrm{.}5\%.$ Floatation costs would raise the effective cost of new equity by $1\%$ over the cost of existing

equity.

$(3)$ Over the next year, which is the company's capital investment planning period, the company

expects to have a net income of $$30$ million, half of which will be paid out as dividends.

$(4)$ The company faces a tax rate of $35\%.$

a$.$ With the given information, determine the number of $20-$year bonds outstanding.

b$.$ Determine the weights of debt and equity using $($i$)$ the book values and $($ii$)$ the market values.

c$.$ Determine the cost of debt, cost of retained earnings, and cost of new common stocks.

d$.$ Determine the breakpoint$($s$)$ using book value weights.

e$.$ Plot the marginal cost of capital schedule for Wisconsin Dairy Products using book value weights. Show

all necessary work.

f$.$ Determine the breakpoint$($s$)$ using market value weights.

g$.$ Plot the marginal cost of capital schedule for Wisconsin Dairy Products using market value weights.

Show all necessary work.