This question is about the Capital Asset Pricing Model (CAPM) and cost of capital. Suppose a business had the following characteristics:

Market Value of Equity = $22,000,000;

Debt = $15,000,000;

Cash or Cash Equivalents = $15,000,000

iD = 0.10 or 10% iMKT = 0.17 or 17%

Corp = 0.30 or 30%

K = 1.5

IRF = 0.02 = 2%

i) Solve for the enterprise value of this business. Show your work.

ii) Solve for the weighted average cost of capital (WACC) using the data above and the basic CAPM model for the equity cost of capital. Show your work and use two significant digits after the decimal in the answer (e.g. XX.XX%).