Use the following information to answer questions 20 through 25. A corporation has 10,000 bonds outstanding with a 6% annual coupon rate, 8 years to maturity, a $1,000 face value, and a $1,100 market price. The companys 500,000 shares of common stock sell for $25 per share, have a beta of 1.5, the risk-free rate is 4%, and the market return is 12%

. 20. What is the market value of equity for this corporation? A. $5 million B. $11 million C. $12.5 million D. $4 billion E. none of the above

21. What is the market value of debt for this corporation? A. $10 million B. $11 million C. $1 billion D. $1.1 billion E. none of the above

22. What is the cost of equity for this corporation? A. 6% B. 12% C. 16% D. 22% E. none of the above

23. What is the pre-tax cost of debt for this corporation? A. 2.69% B. 4.48% C. 6.00% D. 8.97% E. none of the above

24. Assuming a 40% tax rate, what is this corporations after-tax cost of debt? A. 2.69% B. 4.48% C. 6.00% D. 8.97% E. none of the above

25. What is the weighted average cost of capital for this company? A. 9.34% B. 9.77% C. 10.24% D. 10.61% E. none of the above