please show work. will drop a like.

3. Calculate the following firm's cost of capital using market value weights. Balance Sheet (In millions of dollars) Current assets Fixed assets Total assets $40 40 $80 Current liabilities Long-term debt Total liabilities $30 30 $60 Stockholders' equity $20 Total liabilities and equity $80 Shares outstanding: 20 million Stock price: $5.05 Beta: 1.31 Risk free rate: 4 percent Market return: 10 percent YTM or Current borrowing cost: 9 percent The firm's debt is trading at 85 percent of its book value. Tax rate: 21 percent Your answers: 1. Market value of debt (D): 2. Market value of equity (E): 3. Market value of firm (V): 4. D/V: S. E/V: I 6. Ke: 7. Kd: 8. WACC