Question 2 (30 Marks) You are employed by CGT, a Fortune 500 firm that is a major producer of chemicals and plastics, including plastic grocery bags, styrofoam cups, and fertilizers. You are one of the corporate staff and working as an assistant to the Chief Financial Officer (CFO). This is a position with high visibility and the opportunity for rapid advancement, providing you make the right decisions. Your boss has asked you to provide some advice on the Weighted Average Cost of Capital (WACC) for the company given the financial information provided below. You checked The Wall Street Journal and found that CGT bonds are selling currently for \$1100 per bond. The bonds have a $1,000 face value, a 5% annual coupon rate, semiannual payments, are not callable, issued on October 1, 2015, and will expire on October 1, 2035. Questions ( 6 marks each). Show your steps and round your answers to the nearest 2 decimal. a) What is the estimated value of the GGT's after-tax cost of debt? b) What is the estimated value of the GGT's cost of external equity? c) Based on your answers in a and b, what is the estimated value of the GGT's weighted average cost of capital (WACC) for 2020 ? d) Assume GGT's marginal tax rate falls to 15.0%. What would be the GGT's adjusted WACC? e) In 2020, GGT announced it would acquire Twenty-First Century Fox assets for $80,000. Assume GGT paid for the acquisition in cash by raising additional debt. What would be the impact on the GGT's WACC? Comment on your