The company has a beta of 0.8, the risk-free rate of return is currently 7%, and the market return is 9%. The company plans to pay a dividend of $2.60 in the coming year and anticipates that its future dividends will increase at an annual consistent of 5% for the forseeable future. Required: a) Calculate the required return on the company's ordinary shares using the Capital Asset Pricing Model (CAPM). b) Estimate the value of the company's ordinary shares using the Constant-Growth Dividend Model (Use the required rate of return calculated in part (a) ). 2. Weighted Average Cost of Capital (WACC) (5 of 20 marks) The company has a capital structure based on current market values as follow: Type Weighting Returns required by investors Debt 50% Preference Shares 10% Ordinary Shares 40% 8% 10% Calculated in part 1(a) Required: Calculate the company's after-tax WACC, assuming the firm's marginal tax rate is 35%