2. (10 pt) Seneca Corp's bonds pay 5% annual coupon with 10 years to maturity. The bonds currently trade at 95% of par. The company's equity beta is 1.2. Risk-free rate is 3% and expected return of the market is 8%. Corporate tax rate is 40%. The company's target capital structure is 20% debt, 80% equity. Calculate the following for the company: (3 pt) Cost of debt; (ii) (3 gt) Cost of equity; (iii) (4 pt) WACCH 1.4