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)