(a) The newest project to be undertaken by MGMT2023 is forecasted to be financed with common stock, preferred stock and bonds of face value $1,000 in the ratio 5:1:4, respectively. MGMT2023's bonds have an 8.4% coupon rate, paid semiannually, a current maturity of 20 years, and sell for $1,000. The company's common stock currently sells for $30 a share. Preferred stock has a required cost of 9%. MGMT2023's last dividend payment $2.00 which is expected to grow at a rate of 6% into the future. Assume that the flotation cost on debt and preferred stock is zero, and no new stock will be issued. MGNT2023's tax rate is 30%. Determine MGMT2023's weighted average cost of capital? (10 marks) (b) Explain the two broad methods used to calculate interest on a deposit loan and the time period(s) associated with the advantage of one method over the other. (5 marks)