Question 2 (5 marks) The following is an extract of financial information of A Corp. from Bal- ance Sheet: $ Liabilities 30,000 bonds ($1,000; 10% coupon interest p.a.)30,000,000 Share capital 20,000,000 common shares 20,000,000 Additional information: 1. The bonds are redeemable in five years, semi-annual payment. Their current yield to maturity is 8%. 2. The current market price of common shares for A Corp. is $4.8. 3. A Corp. share's beta is 1.1, the T-Bill rate is 5%, and the market risk premium is 8%. 4. The company tax rate is 20%. Required a. What is the after-tax cost of bonds? (0.5 mark) What is the total value of A Corp.'s bonds? (1 mark) b. What is the cost of common shares? (1 mark) What is the total value of A Corp.'s common shares? (0.5 mark) c. Calculate the after tax Weighted Average Cost of Capital for A Corp.? (1 mark) d. Explain the meaning of WACC? (1 mark)