You are valuing Castle Inc., a logistics company, which has the following capital structure: Floating-rate bank loans: book value of $65 million (not traded). Fixed rate bonds: Par value of $100 million, with a 10 year remaining life, and a coupon rate of 4% p.a., trading at 101% of par value. Preferred shares: Par value of $150 million with a dividend rate of 5% p.a., trading at 98% of par value. Common shares: 200 million shares outstanding, trading at $1.8 per share The risk free rate is 1.2% p.a., tax rate is 25%, and the equity risk premium is 6%. The industry beta (unlevered) for the logistics industry is 1.25. Castle has a ROIC of 10%. a. What is the firm's WACC? (1.5 points) b. In Year 0, it had EBITDA of $63 million and depreciation expenses of $8 million. Assuming that Castle is a mature company, growing at a constant rate x% p.a, you have estimated the intrinsic value of the firm's operating assets at $694.7 million. What is the constant rate x% used in the calculation? (1.5 points)