Question 5 If Widgets plc. were an all-equity company, it would have a beta of 1.1. The company has a target debt to equity ratio of 0.40. The expected return on the market portfolio is 13% and the Treasury bills currently yield 7%. The company has issued bonds and the cost of debt is 9.28%. The corporate tax rate is 28%. a) what is the company's cost of unlevered equity? (5 marks) b) what is the company's cost of levered equity? (5 marks) c) what is the company's WACC? (9 marks) d) Review the ways in which positive net present value opportunities may arise when a company wishes to raise funds in the financial markets. Use an example to illustrate your answer. (6 marks) (Total: 25 marks)