A firm has a debt-to-equity ratio of 2:1. The firm's debt beta is 0.7. Five-year government bonds yield 6% pa with a coupon rate of 5% pa. The market's expected dividend return is 3% pa and its expected capital return is 7% pa. The firm stock's next dividend is expected to be $1, paid one year from now. Dividends are expected to be paid annually and grow by 1% pa forever. The current stock price is $10. The corporate tax rate is 30%. Assume a classical tax system. Which statement is NOT correct? O a. The expected return on equity is 11% pa. O b. The expected return on debt is 8.8% pa. . The beta of the firm's equity is 1.65. O d. The beta of the firm's assets is 0.883. O e. The firm's after-tax WACC is 7.77% pa