A company has a target capital of 50% equity, 30% preference share capital and 20% debt. The first 20m equity will cost 15% and any additional equity will cost 18%. The first shs 10m bonds will cost 12% and any additional bond will cost 16%. The cost of preference share is 10%. Required a) The initial WACC (2 marks) b) At what capital structure size will the first sh 20m of equity be exhausted? (3 marks) c) What is the MCC immediately after point (ii) above? (3 marks) d) At what capital structure size will the first shs 10m of bonds be exhausted? (3 marks) e) What is the MCC immediately after point (iv) above? vi. Draw an MCC schedule.