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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

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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 S60 every six months. These bonds currently trade at par. 10-year Government Bonds yield 2% and the market risk premium in 8% pa The beta of the company's equity is 1.5 The debt-to-equity ratio is 23:1 The corporate tax rate is 30% Provide all answers as decimals rounded to 6 decimal places Question ta (3 marks) Calculate the firm's required return on equity (re). Give your answer as a decimal that's correct to 6 decimal placer. So, for example 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 123456789%, you can write 0.012346. Answers: Question 10 (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: Question 1d (3 marka): Calculate the company's after-tax WACC. Give your answer as a decimal that's correct to 6 decimal places or more. So, for example if your answer is 123456789% you can write 0.012346. Answers: Please answer all parts of the question 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 S60 every six months. These bonds currently trade at par. 10-year Government Bonds yield 2% and the market risk premium in 8% pa The beta of the company's equity is 1.5 The debt-to-equity ratio is 23:1 The corporate tax rate is 30% Provide all answers as decimals rounded to 6 decimal places Question ta (3 marks) Calculate the firm's required return on equity (re). Give your answer as a decimal that's correct to 6 decimal placer. So, for example 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 123456789%, you can write 0.012346. Answers: Question 10 (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: Question 1d (3 marka): Calculate the company's after-tax WACC. Give your answer as a decimal that's correct to 6 decimal places or more. So, for example if your answer is 123456789% you can write 0.012346. Answers: Please answer all parts of the

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