Question 4 (22 points total): Using the balance sheet below (and the additional information below, please answer the following 3 questions. a) What is the firm's total market equity capitalization? b) What is the ratio the firm's equity market value to equity book value? c) What is the firm's WACC (weighted average cost of capital? Balance Sheet -- Lion Mane Corporation Cash/Marketable Sec. Accounts Receivable Inventory 500,000 7,000,000 11,500,000 Accounts Payable Taxes Payable Other Accruals 8,500,000 2,500,000 6,000,000 Bond 1 (6 1/2%) Debenture A (9%) 200,000,000 100,000,000 Property Equipment Acc. Dep. Other LT Fixed Assets 250,000,000 1,100,000,000 -400,000,000 300,000,000 Preferred Stock (4%) 400,000,000 Common (Par $1 Par) Surplus Retained Earn. 50,000,000 200,000,000 302,000,000 1,269,000,000 Total Assets 1,269,000,000 Total (Liab + Eq) 30 1.3 5 10 40% Price per Share Beta (Lion Mane) Risk-Free Rate Expected Return on Market Tax Rate a) (5 points) Market Equity Capitalization: Answer b) (6 points) Market Value to Book Value: Answer c) (11 points) WACC