Question 3 (20 marks) Giga Ltd is a publicly traded company with a current share price of $20 per share. Giga Ltd has 30 million shares outstanding, $80 million in debt, and $12 million in cash. Giga Ltd plans to pay $1.50 per share in dividends in the coming year and the dividends are expected to grow by 4% per year in the future. Giga Ltd's long-term debt consists of bonds issued with a face value of $80 million with 10 years to maturity with annual coupon rate of 10% (APR). The long-term bonds are currently trading at par value. The beta of Giga Ltd is 1.30, the risk-free rate is 3%, and the required return on the market portfolio is 8%. The corporate tax rate is 30%. (a) What is Giga Ltd's cost of equity based on the dividend discount model (DDM)? What is the associated dividend yield and capital gain yield? (6 marks)