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Gold Limited has just issued a 12-year bond with a face value of $1000 and a coupon rate of 8.2% p.a. The bond trades at

Gold Limited has just issued a 12-year bond with a face value of $1000 and a coupon rate of 8.2% p.a. The bond trades at a yield to maturity of 7.4% p.a. compounding semi-annually. The companys ordinary shares are currently trading at $32. They just paid a dividend of $1.80 which is expected to grow at a constant rate of 2% p.a. forever. The debt-to-equity ratio is 80%. The corporate tax rate is 30% Assume a classical tax system. Express your answers below as a percentage, rounded after 2 decimals. E.g. if you answer is 0.058328, type 5.83% Required: A) Calculate the firms cost of equity. (2 marks) B) Calculate the firms cost of debt. (2 marks) C) Calculate the firm's after-tax WACC as an effective annual rate. (2 marks)

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