The cost of borrowing on its short-term debt is 4% per year, and long-term borrowing cost is 7%. The beta is 0.7, the current interest rate on bonds is 3% per year, and risk premium for the overall market is estimated to be 9% per year. Marginal tax rate is 20%

Assets Liabilities & Equity Current Assets 35,000,000 Short-Term Debt 60,000,000 Long-Term Assets 250,000,000 Long-Term Debt 120,000,000 Common Stocks 70,000,000 Retain Earnings 35,000,000 285,000,000 285,000,000