Question 5 (10%) Given the following information for Ingham Chicken Ltd, find the WACC under a classical tax system. Assume the company's tax rate is 30%. Debt: 20,000 bonds outstanding, with a 6.2% pa coupon, S1,000 par value, 25 years to maturity, selling for 108% of par; the bonds make half-yearly payments, and the yield is 5.6% pa. Ordinary shares: 500,000 shares outstanding, selling for $75 per share; beta is 1.30. Preference shares: 4.5% preference shares, 20,000 outstanding, currently selling for $90 per share. The par value of a preference share is $100. Market: 8% market risk premium and 3% risk-free rate. Complete the table below: MV (Debt) (1%) MV(Equity) (1%) MV (Pref Share) (1%) Cost of Equity (1%) Cost of Debt After tax cost of debt (1%) Cost of Preference Share (1%) MV (Debt)/MV(Total) (1%) MV (Equity)/MV(Total) (1%) MV (Pref Share MV(Total) (1%) WACC (1%)