2. Burgundy Inc. is financed through bonds and common stock. The bonds were issued five years ago at a par value of $100 (total fund raised through bond issuing is $5m). These bonds have a yield to maturity of 8.48% and are currently trading at $105. The company's shares have a market value of $4m, the return on risk-free government bonds is 8% and the market risk premium has been 5%. Burgundy's shares have a lower than average risk and its historic beta is 0.85. The corporate tax rate is 30%. Burgundy has a net asset figure of $3.5m showing in its balance sheet. a. Calculate the cost of debt and cost of equity capital. b. Calculate the weighted-average cost of capital (WACC). c. Should Burgundy use the WACC for all future projects? Explain your