The table below shows the balance sheet for the Abra Katabra (AB) coffee chain. The company's long-term debt is secured by its real estate assets, but it also uses short-term bank financing. It pays 10% interest on the bank debt and 9% interest on the secured debt. AB has 10 million shares of stock outstanding, trading at $90 per share. The expected return on AB's common stock is 18%. Assume that the book and market values of AB's debt are the same. The marginal tax rate is 35%. a.) Calculate AB's opportunity cost of capital and WACC. (20) b.) Find the firm's beta if you know that the unlevered beta is 1.2 and the comparable market D/E ratio is 50%.(25) 100 Bank loan 280 200 120 Cash and marketable securities Accounts receivable Inventory Current assets Real estate Other assets Accounts payable Current liabilities 50 400 350 2,100 Long-term debt Equity 150 1,800 400 2,600 Total 2,600