LEO Inc. has the balance sheet as shown below.

Recently the yield on bonds similar to the ones that company has had increased to 4.25%, so that the market value of the bonds is now about $715 million.
The rate on company' short-term notes is equal the market's rate on these notes, which is 3%.
a) What are the company's total invested capital and capital structure weights?
b) What is the company's cost of equity according to CAPM, if the U.S. T-bond yield is 2.00 %, the long-term market risk premium is 4.5% and the company's levered beta is 1.2?
c) What is the company's WACC?

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Given 31-Jul-13 Invested Capital Balance Sheet Liabilities and Owners' Capital Current Liabilities (Book Values) (Market Values) Accounts payable Notes payable Other current liabilities 17,550,000 10,000,000 22,266,000 49,816,000 S 10,000,000 Total current liabilities 10,000,000 Long-term debt (6.5% interest paid semiannually, due in 2017) 650,000,000 S 699,816,000 S 714,653,161 724,653,161 Total liabilities Owners' Capital Common stock (at $1 par value per share) 20,000,000 Paid-in-capital Accumulated eamings Total owners' capital Total liabilities and owners' capital 200,025,000 255,000,000 475,025,000 S $ 1,174,841,000S 1,400,000,000 2,124,653,161 US Treasury Bond Yield Estimated Market or Equity Risk Premium Current Share Price Market value of owners' equity Current yield on the firm's long-tem debt Current yield on the firm's short-tem notes Dollar value of short term notes outstanding Corporate tax rate 2.00% 4.50% 70.00 1,400,000,000 4.25% 3.00% 10,000,000 35%