If firms in a certain industry are expected to have a weighted average cost of capital of 20%, calculate the cost of equity based on the cost of debt (ignoring taxes) provided for the firms below. Assume that each firm is worth $10 million.

Firm A: $4 million of debt with a 10% expected return

Firm B: $6 million of debt with a 14% expected return

Firm C: $7 million of debt with a 15% expected return

If bankruptcy costs are $1.2 million and if there is only a 10% chance of bankruptcy occurring, then how much value is lost for each firm due to bankruptcy costs?