A UK firm has issued a £5 million bond which is trading at 102.5, the bond’s coupon is 5% and the yield to maturity of t

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A UK firm has issued a £5 million bond which is trading at
102.5, the bond’s coupon is 5% and the yield to maturity of the
bond is 4.5%. The yield on risk-free government bonds is
2%. The firm has 750,000 shares outstanding which are trading
at £52 per share. The company’s beta is 1.2 and the expected
return of the FTSE250 Index (the market return) is 10%. The
firm is expected to pay a dividend of £5 and its growth rate is
estimated to be 4%. The corporate tax rate for the firm is
22%. What is the firm’s cost of debt? What is the firm’s cost
of equity? If the formula for calculating the WACC= W_E*R_E+W_D*R_D
(1-t_c), what is the firm’s weighted average cost of capital?