Question 1 a. Why is the after-tax cost of debt rather than the before-tax cost of debt used in the weighted average cost of capital calculation? Briefly explain your answer. b. Suppose you are the CFO of BioPharm Ltd. Your company has a beta of 1.15. If the risk-free rate is 4% and the market risk premium is 5%, what is the estimated cost of equity of your company if you want to raise new funds from the stock market to fund a medicine project? c. Ezee corporation has 8,000 bonds outstanding with a 12% coupon rate and annual coupons, has a face value of BDT 1,000, 15 years to maturity and is selling for BDT 1,050. The company has 100,000 shares of common stock selling at BDT 30 per share, with an expected dividend of BDT 2.5 next year and constant growth rate of 8% in the foreseeable future. Assuming a 30% tax rate. what is the company's WACC