(a) Kwetu Limited is evaluating its cost of capital under alternative financing arrangements. In consultation with investment bankers, the company expects to be able to issue new debt at par with a coupon rate of 8% and to issue new preference shares with a Ksh.2.50 per share dividend at a price of Ksh.25. The Ordinary Share of the company is currently selling for Ksh.20. The company expects to pay a dividend of Ksh.1.50 per share next year. Capital Markets Authority forecasts a growth in dividends at a rate of 5% per year. The company's marginal tax rate is 35%. Required: (i) Compute the following: (3 Marks) Cost of Debt Cost of Equity Cost of Preference Shares (ii) If the company raises capital using 45% debt, 5% preference shares, and 50% ordinary share, what is its cost of capital? (3 Marks) (iii) If the company raises capital using 30% debt, 5% preference shares, and 65% ordinary share, what is its cost of capital