a) Given the following information for Tugela Valley Power Co., find the WACC. Assume the companys tax rate is 38%; with an 14% market return and 7% risk-free rate. Preference share: 18 000 7% preference shares (par value of R120 each), currently selling for R125 per share. Debt: 5000 8% coupon bonds in issue, R1000 par value, 15 years to maturity, selling at a YTM of 105% per cent; the bonds make quarterly interest payments. Ordinary shares: 100 000 shares; with a book value of R20, selling for R63 per share; the beta is 1.10. (b) Brinkman Industries has a debt/equity ratio of 1.5. Its WACC is 12 per cent and its cost of debt is 12%. The company tax rate is 28%. What is Brinkmans cost of equity capital? What would the cost of equity be if the debt equity ratio was 2.0? What if it was 1.0? What if it was 0?