Top-Dog generates $100,000 in net operating income each year and has a capital structure consisting of both debt and equity. Top-Dog must pay $25,000 yearly in interest on its $500,000 of debt. Assume the unlevered cost of equity is 10% and the tax rate is 40%. Answer the questions below based on the Modigliani-Miller (1963) model with corporate taxes.

a. What is the cost of equity for Top-Dog?

b. What is firm value for Top-Dog?

c. What is WACC for Top-Dog?