Helms Aircraft has a capital structure that consists of 60% debt and 40% common stock. The firm will be able to use retained earnings to fund the...

Helms Aircraft has a capital structure that consists of 60% debt and 40% common stock. The firm will be able to use retained earnings to fund the equity portion of its capital budget. The company recently issued bonds with a yield to maturity of 9%. The risk-free rate is 3%, the market risk premium is 6%, and Helms' beta is equal to 0.9. The company's tax rate is 38%.