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The balance sheet-for AZS Corp. for the year ending 2020 is given below. All numbers are in millions of dollars. Assets Liabilities and owner's equity

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The balance sheet-for AZS Corp. for the year ending 2020 is given below. All numbers are in millions of dollars. Assets Liabilities and owner's equity Current assets $18 million Current liabilities $10 million Gross fixed assets $100 million Long-term debt (Bonds) $20 million Net fixed assets $82 million Equity Total assets $100 million Common stock ($0.50 par) Paid-in capital Retained earnings Total equity $20 million $20 million $30 million $70 million Total liabilities plus owner's equity $100 million The firm's common stock is trading at $10 per share and the bonds are trading at $890.84 each. The stock paid a dividend of $0.50 per share today and dividends are expected to increase at 5% per annum into the future. The bonds were issued 2 years ago, had an original life of 20 years and carry a 5% coupon that is paid semi-annually. The tax rate is 20% 13. What is the firm's cost of equity? 14. Suppose the firm incurs an issuing (or floatation) cost equal to 15% of price when they issue new stock. What is the firm's cost of equity under these conditions? 15. What is the firm's after-tax cost of debt?- 16. What is the firm's capital structure (in book value terms)? 17. What is the firm's capital structure in market value terms)

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