ASC plc ls financed by a mixture of debt and equity. ASC's capital structure is nine parts equity to one part debt. This is considered a very low level of gearing for ABC's Industry ABC would like to calculate its weighted average cost of capital (WACC). (a) Calculate ABC's percentage of debt and equity finance. (1 mark) The yield to maturity on ABC's bonds is 525 (D) Calculate the after-tax cost of debt. (1 mark) ABC's ordinary stocks are currently priced at $40. The latest DPS of 52 has just been paid and dividends are expected to grow at 8% per annum. (c) Calculate ABC's cost of equity. (2 marks) (a) Calculate ABC'S WACC (2 marks) Assuming ABC raises some additional debt finance and this alters the capital structure to eight parts equity to two parts debt: (e) Based on the traditional view of gearing, what would be the expected impact on ABC's cost of equity and WACC? (4 marks)