Question 16 Nut ye. Swed Marked out of 12.CO Flag qucation 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 systern. 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 firrm'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 0012346 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 ID/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 0.012348. Answers: Question 1d (3 marks): 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 1.23456789%, you can write 0.012346. Answers