Levered Inc’s market value of equity is $60 million and market value of its debt is $50 million. Levered’s pretax cost o

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Levered Inc’s market value of equity is $60 million and market
value of its debt is $50 million. Levered’s pretax cost of debt is
9.0%, while corporate tax rate is 34%. The risk free rate is 4%,
while the expected market return is 12%. Levered’s firm level beta
is 0.70.
Calculate market risk premium (3 pts)
Calculate after-tax cost of debt (2 pts)
Calculate cost of equity (3 pts)
Calculate company’s (4 pts)