Question: MAC isa UK-based fiem that was created in 2005 to manufacture parts for airplanes Ahmed, an HCT business graduate, was recently recruited at the

MAC isa UK-based fiem that was created in 2005 to manufacture parts for airplanes Ahmed, an HCT business graduate, was recently recruited at the company's Dubal-based subsidiary as a finance analyst. He was sent by his manager to MAC's headquarter in London to better understand the firm's cost of capital Ahmed collected the following information abqut MAC: Market value of common shares (GBP milion) Cost of equity 3000 12% Market value of preference stock Cost of preferred stock Market value of debt (GBP million) Market price per bond (% of par principal) (GBP milion) 200 8% 525 1050 Per bond Interest rate 3.50% Corporate Tax 25% Required Calculate the after-tax cost of debt. Show your workings (4 marks) Calculate the market value of total capital. Show your workings. (1 marks) Caiculate the cost of captal (or Weighted Average Cost of Capitial, WACC). Show your workings (4 marks) Note: show one decimal place for all calculations

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