Question 12b: A firm owns $5m of trucks with a beta of 2 and $5m of cash with a beta of zero. The firm is funded by 60% debt and 40% equity. All figures above are current market values. The firm has 4 million shares on issue. The risk free rate is 2% pa and the market required return is 8% pa. The firm's loans have a coupon rate of 6% and a yield to maturity of 5% pa. Ignore taxes. Which of the following statements is NOT correct? The firm's: Select one: O a. Assets are worth $10m, have a beta of 1 and required return of 8% pa. O b. Debt is worth $6m and has a beta of 0.25. o c. Equity is worth $4m and has a beta of 1.75. d. Equity required return is 12.5% pa. e. The share price is $1