(d) Mary has calculated the cost of capital (WACC) for CSL to be 7.1%, using an after- tax cost of debt of 2.8% and a cost of equity of 7.5% (there are no preferred shares in the company). What is the debt-to-capital ratio implied in Mary's WACC calculation? (3 marks). 0.085 (e) Using the information from part (d), what is the levered beta used by Mary if the current risk-free rate is 2.7% and the risk premium is 5.6%? How do you interpret the value of this levered beta? What is the unlevered beta of CSL if the tax rate of the company is 30%? (4 marks) 0.805 (f) CSL has reported an R&D expense (in millions) of $366 for the current financial year FY2017. Assuming an amortizable life of research assets of five years, the R&D expenses over the previous 5 years were: $427 (FY2016), $466 (FY2015), $463 (FY2014), $614 (FY2013), and $645 (FY2012). What is: (i) CSL's total value of research assets and, (ii) the amortization of R&D expense? (7 marks) Value of research assets = 1295.2 Amortization = 523