Use the following information to answer problem no. 38-61. Defence Electronic, Inc. (DEI) is a large, publicly traded firm that is the market share leader in radar detection system (RDS). The following market data on DEI's securities are: Debt: 240,000 5%-coupon bonds outstanding, 20 years to maturity, selling for 94% of par; the bonds have a $1,000 par value each and make annual payment. Common stock: 9,000,000 share outstanding, selling for $71 per share the beta is 1.2 Preferred stock: 400,000 shares of 5.5% preferred stock outstanding, selling for $81 per share. Market: 8% expected market return, 5% risk-free rate, and 35% tax rate 58. What is the market value of the firm? a. $900.0 millions b. $671.4 millions c. $864.6 millions d. $911.4 millions 59. What is the common stock's cost of equity? a. 7.5% b. 8.6% c. 9.0% d. 9.4% 60. What is the cost of debt? a. 4.50% b. 5.00% c. 5.50% d. 6.00% a. 61. What is the WACC? 7.17% b. 7.35% c. 8.20% d. 9.15%