Question 13c: 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. The same firm above then buys some under-priced new trucks for $3m that are actually worth $4m, funded by the firm's existing cash. Which of the following statements is NOT correct? All answer options are rounded to 6 decimal places. The firm's: Select one: o a. Assets are worth $11m, have a beta of 1.5 and required return of 11% pa. 0 b. Debt is worth $6m and has a beta of 0.5. c. Equity is worth $5m and has a beta of 3. d. Equity required return is 20% pa. e. The NPV of buying the new trucks is $1m