Part 1: Problems - 2 questions (45 pts.) Solve the following problems. You must must show all work for full credit. Partial credit will be given. 1. Weighted Average Cost of Capital Suppose Enviro-tech is attempting 1.000.000 share to standing company has 50,000 bonds outstandin TOGUGr we and an annual Coun 55% Management believes today's market. The company's beta is 0.8, the risk-free to premium is 6%. The tax rate is 25%. timate its cost of capital (WACC). The company has hat currently sells for $70 per share. In addition, the with 15 years left until maturity that pay a $1,000 par management believes these bonds would sell for 990.00 als 0.8, the risk-free rate is 3% and the market risk a. What is the total market value of the company's stock (MVE) b. What is the total market value of the company's bonds (MVD)? c. What is the total market value of firm's financial contracts (total invested capital d. Estimate of the percentage of the company financed with debt (wa). e. Estimate the percentage of the company financed with equity (w.). f. Estimate the firm's cost of debt (ra). 9. Estimate the firm's cost of equity (ra) using the CAPM. h. Compute an estimate of the firm's weighted average cost of capital (WACC)