Exercise #$4$ A$.$ What is the after$-$tax cost of capital for a firm if the firm's book value of equity is

$$600,000.$ The accounting debt$-$to$-$equity ratio is $1\mathrm{.}7.$ Debt trades at $85\%$ of the par value. The market$-$

to$-$book ratio is $1\mathrm{.}2.$ The cost of debt $($yield$)$ is $7\mathrm{.}4\%,$ the cost of equity is $15\%,$ and the tax rate is $28\%?$

B: What is the per$-$year debt tax shield?

What is the PV of the perpetual tax shield?

C: A project' capital costs are $20,000$ and will require $$2,000$ of working capital. The working capital will

be recaptured at the end. The project will provide $$9,000$ in after$-$tax operating cash flows for $4$ years.

These include depreciation tax shield, but not working capital. What is the NPV$?$