Tasks You are required to complete the following tasks. e Show the formula and complete calculations for each answer you calculate. e Define all variables of each formula used and show any calculations required to adjust them for use in applying the formula to solving each problem. e Format your answers as defined in each task. e When incorporating an answer to a prior task in a subsequent task, use the value as it has been formatted. For example, if a task required you calculate and format as a percentage to 3 decimal places, the answer should be formatted as 1.234%. If this value is subsequently included in the calculation of the answer to a subsequent task, then the value you must use is 1.234% or 0.01234. Part 1: Calculate Rural Services Ltd's Weighted Average Cost of Capital (30 marks) a) Calculate the before-tax cost of Rural Services Ltd's bank loans and corporate bonds. Show your answer formatted as a percentage to 3 decimal places. (6 marks) b) Calculate the cost of Rural Services Ltd's ordinary shares. Show your answer formatted as a percentage to 3 decimal places. (6 marks) ) Calculate the estimated market value of Rural Services Ltd's bank loans and corporate bonds. Show your answer formatted as dollar values. (6 marks) d) Calculate the estimated market value of Rural Services Ltd's ordinary shares. Show your answer formatted as dollar values. (8 marks) e) Calculate Rural Services Ltd's WACC. Show your answer formatted as a percentage to four decimal places. (4 marks) Please turn over for Part 2 Rubric Conceptual taggart recurs of solving the pr master stich doesstatus phones Quantitative Skills cakelines the sedition to the goodder Reflective Skills Communicative presentation of, fortsam and calculators. omitting Incom pliess, at suffer from pass Feelings and rehook it ret theary Scenario ri business company. Rural Services Lid provides a range of products and services, across rural icultural retail products, agency services, real estate services and financials cattle feed howme is a erika between and covered recently on rural property Owned BY The Game peace Piecewent yield in you applications, expectsly in the production of tphones, laptops, and energy storage systems. Additionally, Intour is who ined in other stores ceramics, Bless, and pharmac we made batteries, Your company's Chief Financial Officer has asked you to make a thistanding the significant diversification such an Investment would represent for the for Rural Services if you proper you colain the zoos incornea ament and Balance Sheet for Core Lithium Led a small Islam miner al statements are provided on pages 4 and 5. You calculs 12's Financial Account janine Generals ave Expenses Property Phant and Equipment EHOLDERS' EQUITY have 5 years to mustarty. They make quarterly 023 Financial Accounts SHAREHOLDERS' EQUITY Total Uabilities and Shareholders' Equity 2023 Gress Margin Net Workin Net Profit/Equity Ret Interest Rates he 10-year risk free rate is 4.315%. rented in the table below. Project Information Flare and Equipment (PPE) shows in the Core unum und 2023 ange 's are sho aware that Rural Services Lid has budgeted to spend $2 milic Grul geotechnical and legal fees appraising the project before making the final wewere maren you have calculated for Core Lithium, shown on page 6. tiplied by the investment Rural Services will need to undertake the project He for the project and that revenues will grow by 35% in year 2. 251 In year 3, 15%% in ear 4 and 5% in its fifth and final year. decide to be guided by the Cost of Sales/Revenue Ratio you have cake uthlim as shown on page s, which you will apply through the entire five year ify of the won wil be calculated using the diminishing value meth aim of fully reciating the Investment by the end of the life of the project. You decide to apply the tax rate you calculated for Rural Services Lid, shown on page During the life of the project, you estimate that the firm will need to provide for an crease in net working capital comprising an increase in Receivables and stock, an increase in Payables. You have cakuused the Net Working Cast Serverrae Ratio of Rural Services Led and Core Lithium shown on page d. You decide to Be the 2023 Net Working Capkal/Sales Revenue Ration of Rural Services Itd to serial additional amount of Net Working Capital that will be required to service the In the year after the thee ver Ife of the protect you are advbet that the company e to apply a 5% equity thk premium in your estimation of CAPM