0 0 O 0 0 O 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) (19) MV(Equity) (19) MV (Pref Share) (19) Cost of Equity (19) Cost of Debt After tax cost of debt (196) Cost of Preference Share (196) MV (Debt MV(Total) (196) MV (Equity MV(Total) (19) MV (Prer Share MV Total) (19) WACC (19)