Question 1 (total of 12 marks): Data about a company and the financial markets are given below. All rates are effective annual rates. Assume a classical tax system. The company has 1 million shares. The shares are expected to pay their next annual dividend of $20 in one year, which will grow by the 2% inflation rate every year after that. The beta of the company's equity is 1.5. The company is also funded by 2 million 10-year bonds which it just issued. Each has a $100 face value, a 4% pa yield to maturity and a 3% pa coupon rate, paid annually. The corporate tax rate is 30%. 10 year government bonds yield 1% pa and have zero coupons. The ASX200 market index has a total expected return of 6% pa. Provide all answers as decimals rounded to at least 6 decimal places. Question 1a (4 marks): Calculate the current price of one of the firm's bonds. Answers: Question 1b (2 marks): Calculate the firm's required return on equity. Give your answer as a decimal correct to at least 6 decimal places. So for example if your answer is 1.23456789%, write 0.0123456789. Answers: Question 1c (2 marks): Calculate the current price of one of the firm's shares. Answers: Question 1d (2 marks): Calculate the firm's debt-to-assets ratio. Give your answer as a decimal correct to at least 6 decimal places. So for example if your answer is 1.23456789%, write 0.0123456789. Answers: Question 1e (2 marks): Calculate the company's after-tax WACC. Give your answer as a decimal correct to at least 6 decimal places. So for example if your answer is 1.23456789%, write 0.0123456789. Answers