WHICH IS NOT CORRECT

A firm has a debt-to-equity ratio of 2:1. The firm's debt beta is 0.6. Five-year government bonds yield 5% pa with a coupon rate of 3% pa. The market's expected dividend return is 2% pa and its expected capital return is 8% pa. The firm stock's next dividend is expected to be $2, paid one year from now. Dividends are expected to be paid annually and grow by 3% pa forever. The current stock price $10. The corporate tax rate is 30%. Assume a classical tax system. Which statement is NOT correct? O a. The firm's after-tax WACC is 11.4% pa. O b. The expected return on equity is 23% pa. O c The expected return on debt is 8% pa. O d. The beta of the firm's assets is 2.1. O e The beta of the firm's equity is 3.6