Please explain every step, and Round the final answer to 4 decimal places.

Question 1 ABC Inc. has 2 million shares outstanding. Its equity beta is 1.15. It is expected that ABC will pay dividend of $5 per share forever. ABC has two outstanding debts: 25-year bonds with $20 million face value; 8.5% coupon (paid semi-annually); trading at 105.37 (105.37% of face value). 30-year bonds with $40 million face value; 8% coupon (paid semi-annually); trading at 9% yield. The risk-free rate is 4.5% and the market risk premium is 8%. ABC has a 35% tax rate. a) What is WACC of ABC? b) CBA Inc. is identical to ABC except that CBA is 60% debt-financed, its cost of debt is 50 bps (100 basis points = 100 bps = 1%) higher than ABC, and its tax rate is 40%. Estimate the WACC of CBA