1. The cost of equity of a certain company amounts is calculated based on CAPM (risk free rate 5%, market premium 8%, beta 1,3), the nominal cost of a long-term credit amounts to 10%,the nominal cost of capital raised from the issue of bonds amounts to 12%. Interest on the bonds is paid twice a year, the credit is repaid four times a year. We also know that the market value of the share capital equals 1000 mu, the nominal value of shares amounts to 800, the nominal value of the long-term credit: 600, the nominal value of the issued bonds: 300. a) On the basis of the available data please, estimate the cost of equity (5 marks) b) On the basis of the available data and the information that the tax rate amounts to 19%, please, estimate the value of WACC. (10 marks)