Question 1. Suppose you are appointed as a new financial adviser to Hana Group of Companies who has three costs for each component as follows: Debt Preferred Stock Common Stock $125 Market price Outstanding $45 812 shares $28 5,000 shares 310 bonds Market value Cost of capital 8% 10% Using the market value of the capital components, and a corporate tax rate of 30%, a) Calculate the market value of Hana Group of Companies. (5% marks). b) Calculate the appropriate WACC adjusted of Hana Group of Companies, if the WACC adjusted is defined as: = (1 x Re] + 1 p x Rps] + 1 x Rps] + x Rd x (1 - Tc)] (10% marks) c) What is the discount rate of Hana Group of Companies? What are the assumptions underlying the use of weighted average cost of capital (WACC) as a discount rate? (10% marks) YY Three Questions Only)