a) Lloyd's common stock has a beta of 1.5. If the risk-free rate is 4.5% and the expected return on the market is 12%, what is the bank cost of equity? (6 marks) b) Air Asia Berhad (AA) has a debt-equity ratio of 2. Its weighted average cost of capital is 12% and its cost of debt is 8%. If the company is subject to a corporate tax of 25%, i) What is AA's cost of equity capital? (5 marks) ii) What is AA's levered cost of equity? (5 marks) iii) Would your answer be different if there was no corporate tax? Explain your answer. (4 marks) iv) What would be its cost of equity and WACC if the AA change its debtequity ratio to 1