Question: b . PSK Enterprises has long - term debt which has a face value of $ 2 5 0 million and is currently traded at

b. PSK Enterprises has long-term debt which has a face value of $250 million and is currently traded at $96 million. The debt pays a semiannual coupon of $7.5 million and has a remaining maturity of 10 years. The market value of the equity is $240 million and the pretax WACC of the firm is 14%. The firm has a marginal tax rate of 27%. Please calculate the levered and the unlevered cost of equity for PSK Enterprises.

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