Using the data in the given table, answer the questions asked in parts (a), (b) and (c).

Items	Capital Structure
	Wet n Wild	Taronga Zoo	Jamberoo
Debt ($ million)	35	40	60
Ordinary shares ($ million)	65	60	40
TOTAL CAPITAL ($ million)	100	100	100
Debt (YTM)	6.5%	7.6%	8.50%
Ordinary Equity Beta	1.25	1.15	1.18

The risk-free rate is 4.5% and the market return is currently 8.5%. Further, Company Tax rate is 30%.

Required:

1. Calculate the cost of ordinary shares for the selected two entities (i.e., Taronga Zoo and Jamberoo). (6 marks)
2. Calculate the after-tax cost of debt for the two selected entities (i.e., Taronga Zoo and Jamberoo). (3 marks)
3. Calculate the weighted average cost of capital (WACC) for the selected two entities (i.e., Taronga Zoo and Jamberoo). (6 marks)

Answer 4: [Answer and show workings here]