Use this scenario to answer the following 4 questions. Small Things Inc. (STI) currently has a bond issue outstanding with 8 years to maturity, a face value of $1,000, and a coupon rate of 7.00% annually. The bond currently sells for 105.622 percent of par. STI's common stock has a beta of 0.85, and currently sells at $56 per share. Treasury bills yield 2.53% and the expected rate of return on the market is 7%. STI's total bond debt has a face value of $8,000,000 and there are 400,000 shares outstanding. The marginal tax rate is 35%. Use this scenario to answer the following 4 questions. Small Things Inc. (STI) currently has a bond issue outstanding with 8 years to maturity, a face value of $1,000, and a coupon rate of 7.00% annually. The bond currently sells for 105.622 percent of par. STI's common stock has a beta of 0.85, and currently sells at $56 per share. Treasury bills yield 2.53% and the expected rate of return on the market is 7%. STI's total bond debt has a face value of $8,000,000 and there are 400,000 shares outstanding. The marginal tax rate is 35%