Q1 A Hose PLC presently has a capital structure which is 30 percent debt and 70 percent equity. The cost of debt before tax shield benefits is 9 percent and that for equity is 15 percent. The firm's future cash flows, after tax, but before interest, are expected to be a perpetuity of $750,000. The tax rate is 30 percent. Calculate the WACC and the value of the firm