A firm has a debt-to-equity ratio of 1:1. The firms debt beta is 0.3. Five-year government bonds yield 5% pa with a coupon rate of 4% pa. The market's expected dividend return is 4% pa and its expected capital return is 6% pa. The firm stocks next dividend is expected to be $2, paid one year from now. Dividends are expected to be paid annually and grow by 1% pa forever. The current stock price $10. The corporate tax rate is 30%. Assume a classical tax system. Which statement is NOT correct?

a. The expected return on equity is 21% pa.

b. The firms after-tax WACC is 13.75% pa.

c. The beta of the firm's equity is 3.2.

d. The expected return on debt is 6.5% pa.

e. The beta of the firms assets is 1.75.