Yamamoto manufactures semi$-$conductor chips. Its beta assuming an all$-$equity company is is $1\mathrm{.}16$ and unlevered cash flows are $$5$ million a year forever. The company has a debt$-$equity ratio of $0\mathrm{.}30.$ The expected return on the market portfolio is $13$ percent and Treasury bill rate is $2\mathrm{.}9$ percent. The company's $7\mathrm{.}2\%$ coupon bonds mature in $15$ years, have a par value of $$1,000$ make annual payments and currently sell for $120\%$ of par. The corporate tax rate is $26$ percent. a$.$ Determine the levered cost of equity for Yamamoto. b$.$ Determine the value of the company's equity using the FTE method.