Question: answer all the problems by first giving the right formulas (without numbers) and then computing the numerical answers and results. Show all the work please

answer all the problems by first giving the right formulas (without numbers) and then computing the numerical answers and results. Show all the work please

2.Consider a company having 100 Million common stocks. The priceand the betaof each stock are respectively equal to $20 and 0.7. The market value of itsdebt is $500 Million and considered as risk free. The risk-freerate is equal to 4% and the market expected returnis 11%.

a)What is the value of the common stocks?

b)Evaluate the expected return of the common stocks.

c)What is the value of the company?

d)Evaluate the weighted average cost of capital.

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