You have the following information about company XEquity shares outstanding: 20 millionStock price

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You own the forthcoming notice environing community X

Equity shares outstanding: 20 pet

Stock price

per share: $40.00

Yield to ripeness on debt: 7.5%

Book reprove of attention port debt: $320 pet

Coupon attention reprove on debt: 4.8%

Market reprove of debt: $290 pet

Book reprove of equity: $500 pet

Cost of equity chief: 14%

Tax reprove: 35%

community X is contemplating what for the community is an average-risk boarding requireing $40 pet and shy an annual ATCF of $5.0 pet in constancy.

a. What is the inside reprove of recur on the boarding? (forumula)

b. What is the weighted-average require of chief? (formula)

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