Question 1 (10 marks) Show all your work 1. Futamaki Inc has a Weighted Average Cost of Capital (WACC) of 6.3% and tax rate of 30%. What is the cost of equity if the after-Tax Cost of Debt is 3.5% and the debt to equity ratio is 6? 2. Brinkmanship Corp. wants to know what their cost of equity would be if the company Beta is 2.25, the market risk premium is 7% and Government T-bills are yielding 4.5% 3. Sukdeev is looking for a mortgage. He goes to the bank and they tell him that the rate is 4% with quarterly payments. Since he took Managerial Finance, he knows that this is the APR. What would be Sukdeev's EAR