(a) Biden ple's finance director is evaluating a new four-year recovery project for Uncle Sam. You are a member of Biden plc' finance team and have been asked to find out the appropriate cost of capital figure for the company's project appraisal. Assume that the current date is 31 March 2021, the company's financial year end, and the corporation tax rate is 21%. The Balance Sheet of the company provides the following information: Ordinary shares (nominal value 1 each) 20,500,000 6% preference shares (nominal value 1 each) 4,300,000 4% irredeemable debentures (nominal value 100 each) 5,200.000 3% redeemable debentures* (nominal value 100 each) 6,500,000 Redeemable with a 2% premium (i.e., 102% of nominal value) on 31 March 2024. The market values of the company's capital as of 31 March 2021 are as follows: Ordinary shares 3.11 per share (cum-dividend) 6% preference shares 1.20 per share (ex-dividend) 4% irredeemable debentures 105% (ex-interest) 3% redeemable debentures 101% (cum-interest) Biden plc's ordinary dividend for the year to 31 March 2021 totals 5,125,000 and this is due to be paid on 14 April 2021. Biden plc's ordinary dividends have been increasing at a steady annual rate since the year ended 31 March 2016 when they totalled 4,421,000. Biden pic's issued ordinary share capital has not changed since 2015. Required: Calculate Biden plc's existing Weighted Average Cost of Capital at 31 March 2021. (18 marks) (b) Convertible bonds had been reported as a popular type of financing in year 2020, particularly for firms badly hit by the coronavirus pandemic. Discuss the pros and cons of convertible bonds as a source of finance, especially in the face of greater uncertainty. (12 marks) (c) The directors of Joe pic are seeking to raise 5 million via a rights issue. The company currently has 5 million of issued share capital (nominal value 0.50 each), and the market price per share is currently 3 cum-rights. The directors are considering a rights issue subscription price of either 1 per share or 2 per share for new shares. Required: Calculate the theoretical ex-rights price per share if the rights issue subscription price is 0 1 per share. (1) 2 per share. (4 marks) (d) Explain why a rights issue generally results in a fall in the market price of shares