This is a subjective question, hence you have to write your answer in the Text-Field given below. XYZ Corp. has 20 million shares of common stock outstanding. The common stock currently sells for $70 per share and has a beta of 0.80 XYZ Corp. has 400,000 bonds outstanding and currently being traded at par. The ytm (yield to maturity) of the bond is 7% p.a. The market risk premium is 8%, T-bills are yielding 3.5% p.a and corporate tax rate is 28%. All p.a. rates are EAR. What is the firm's market value capital structure (i.e. Market value of debt/Market value of equity)? What is the firm's cost of capital? If XYZ Corp. is evaluating a new investment project that has an investment of $100 million at year 0 and is expected to have a cash flow of $25 million from Year 1 onwards growing at the rate of 6% p.a. forever, what is the NPV of the project? [10]