1 a. Why is the after-tax cost of debt rather than the before-tax cost of debt used in the weighted average cost of capital calculation? Briefly explain your answer. b. Suppose you are the CFO of BioPharm Ltd. Your company has a beta of 1.15. If the risk-free rate is 5% and the market risk premium is 4%, what is the estimated cost of equity of your company if you want to raise new funds from the stock market to fund a medicine project? c. Ezee corporation has 8,000 bonds outstanding with a 12% coupon rate and annual coupons, has a face value of BDT 1,000, 15 years to maturity and is selling for BDT 1,150 . The company