Qinetig plc. makes full body scanners for airport security systems. The Transportation Security Administration (TSA) is considering ordering 100 such machines at a total cost of $20 million. To ramp up production for the order Qinetic is considering building a new factory. To evaluate the new factory project, Qinetig needs to estimate its cost of capital. Review the following information and answer the questions that follow to help Qinetia with its analysis Debt Equity Number of bonds outstanding = 200,000 Market price - $49 Face value = $1,000 Shares outstanding = 4 million Maturity = 2 years Beta - 0.97 Coupons 9% paid annually Risk-free rate Market price $1,020.44 Expected retum on market 13% Tax rate 35% 7% a. What is the after-tax cost of debt for Qinotiq bonds? D% (Round to two decimal places.) b. According to the CAPM, what is the required return of Qinetiq shareholders? 0% (Round to two decimal places.) c. What is the weighted average cost of capital (WACC) for Qinetiq? % (Round to two decimal places.)