1)What is the after-tax cost of debt for Qinetiq bonds? ______ (round 2 places)

2) According to the CAPM, what is the required return of Qinetiq shareholders? _______ (round 2 places)

3)What is the weighted average cost of capital (WACC) for Qinetiq? ________ (round 2 places)

Qinetiq plc. makes full body scanners for airport security systems. The Transportation Security Administration (TSA) is considering ordering 100 such machines at a total cost of $20 million. To ramp up production for the order Qinetiq is considering building a new factory. To evaluate the ne factory pro ect Cinet q needs to estimate its cost of capital Review the following information and answer the questions that follo to he Qinetiq with its analysis. Debt Number of bonds outstanding- Face value Maturity Coupons Market price Tax rate Equity Market price- Shares outstanding- Beta Risk-free rate Expected return on market- $46 4 million 0.93 $1,000 5 years 9% paid annually $1,013.81 32% 896 a. What is the after-tax cost of debt for Qinetiq bonds? b. According to the CAPM, what is the required return of Qinetiq shareholders? a. What is the after-tax cost of debt for Qinetiq bonds? % (Round to two decimal places.)