2. 10 marks Delux Pty Ltd (ASK Listed Firm) provides mechanical services to the customers. Table below shows an extract of its balance sheet as at 30 June 2020: Delux Balance Sheet as at 30 June 2020 (Extract) Short Term Notes (16% interest) a) Calculate cost of equity for each company using CAPM if beta rm is 1.20, risk free rate 4.8%, and market risk premium is 5.2%. Round to two decimals. 2 Marks .6) How much is WACC with 30% tax rate? Hint: capitol 5&1;ch comprises ofone equity and Mo debts components. Round to two decimals. 5 marks c} Explain why listed companies still tens to borrow when they can sell shares in stock market? What are implications of borrowing on cost of equity capital and perceived risk of business in stock market? 3 Marks