Data about a company and the financial markets are given below. All rates are effective annual rates. Assume a classical tax system. The company has 1 million shares. The shares are expected to pay their next annual dividend of $20 in one year, which will grow by the 2% inflation rate every year after that. The beta of the company's equity is 1.5. The company is also funded by 2 million 10-year bonds which it just issued. Each has a $100 face value, a 4% pa yield to maturity and a 3% pa coupon rate, paid annually. The corporate tax rate is 30%. 10-year government bonds yield 1% pa and have zero coupons. The ASX200 market index has a total expected return of 6% pa . . a) Calculate the current price of one of the firm's bonds. (6 d.p) b) Calculate the firm's required return on equity. (6 d.p) c) Calculate the current price of one of the firm's shares. (6 d.p) d) Calculate the firm's debt-to-assets ratio. (6 d.p) e) Calculate the company's after-tax WACC. (6 d.p) Data about a company and the financial markets are given below. All rates are effective annual rates. Assume a classical tax system. The company has 1 million shares. The shares are expected to pay their next annual dividend of $20 in one year, which will grow by the 2% inflation rate every year after that. The beta of the company's equity is 1.5. The company is also funded by 2 million 10-year bonds which it just issued. Each has a $100 face value, a 4% pa yield to maturity and a 3% pa coupon rate, paid annually. The corporate tax rate is 30%. 10-year government bonds yield 1% pa and have zero coupons. The ASX200 market index has a total expected return of 6% pa . . a) Calculate the current price of one of the firm's bonds. (6 d.p) b) Calculate the firm's required return on equity. (6 d.p) c) Calculate the current price of one of the firm's shares. (6 d.p) d) Calculate the firm's debt-to-assets ratio. (6 d.p) e) Calculate the company's after-tax WACC. (6 d.p)