A levered firm has only 2 assets on its balance sheet with the below market values and CAPM betas. The risk free rate is 3% pa and the market risk premium is 5% pa. Assume that the CAPM is correct and all assets are fairly priced.

Selected Company Details
Item	Market value ($m)	Beta
Cash asset	0.5	0
Truck asset	0.5	2
Loan liabilities	0.25	0.1
Equity funding	?	?

Which of the following statements is NOT correct? The:

Select one:

a. Firms debt-to-assets ratio is 25%.

b. Equity beta is 1.4.

c. Equity required return is 9.5% pa.

d. Required return on debt is 3.5% pa.

e. Required return on assets (or WACC before tax) is 8% pa.