Question 1 (total of 12 marks): Moby Ltd has provided you with the following information. All rates are effective annual rates. Assume a classical tax system. The company has bonds on issue with a face value of $1,000 that currently pay a coupon of $40 every six months. These bonds currently trade at par. 10-year Government Bonds yield 5% and the market risk premium is 4% pa. The beta of the company's equity is 1.2 The debt-to-equity ratio is 2.5:1 The corporate tax rate is 30% Provide all answers as decimals rounded to 6 decimal places. Question 1a (3 marks): Calculate the firm's required return on equity (TE). Give your answer as a decimal that's correct to 6 decimal places. So, for example if your answer is 1.23456789%, you can write 0.012346. Answers: Question 1b (3 marks): Calculate the after tax cost of debt. Give your answer as a decimal that's correct to 6 decimal places. So, for example if your answer is 1.23456789%, you can write 0.012346. Answers: Question 1c (3 marks): Calculate the weighting of Debt (D/V). Give your answer as a decimal that's correct to 6 decimal places. So, for example if your answer is 1.23456789%, you can write 0.012346. Answers