Use the following information for questions 8-11. Megalo-Mart is financed by 2 classes of equity and one class of debt. Class A equity just paid a dividend of $1.45 which is expected to grow at 2.75% perpetually, and is priced at $13.24. Class B equity returns have a covariance with the market returns of 0.04125. The risk free rate is 4%, the expected return on the market is 12% and the variance of market returns is 3.75%. The debt has 20 years to maturity, with a coupon rate of 8% paid annually, a face value of $1000 and is selling at 95% of par. The debt to equity ratio is 0.8 and the class B equity has twice the value