a The following has been extracted from the books of Chobe Holdings as at 308 June 2018. Price Market Shares Market Value Outstanding |-000 Debt (book value P 6,131 Class A common -25.75 12,000,000 P 309 Staff Class A Common 23.09 347,426,000 P 8,022 Class B Common |23.27 1,018,625,000 P 23,703 Total 38,165 You have been requested by the Senior Analyst to estimate the cost of capital for Chobe Holdings as at 30th June 2018. The beta for the company is estimated to be 0.79. The current risk-free rate is 4.07% while historical market risk premium is 6.89%. The yield on the company's long-term bond is 5.73 and the firm is in the 40% marginal tax rate. i. Calculate the cost of equity for the firm [2 marks] ii. Calculate the cost of debt [2 marks] iii. Estimate the value weights of equity and debt. (4 marks) iv. Calculate the cost of capital for Chobe Holdings. [4 marks] v. Under what conditions will you advice the fim to use this cost of capital for discourting any project it intends to undertake. [4 marks) b. What are the two advantages and two weaknesses of a sole proprietorship formof business. [4 marks]