c. The following balance sheet as 31 December 2015 was extracted trom Melbourme Company Sources of finance Commercial bills Bank overdraft Bonds 10% Preference shares Book value 200,000 100,000 300,000 200,000 600,000 shares (60,000Rs. 1 The following additional information is given by the company financial managor I. The commercial bills have a current interest yield of 8.00% per annum. The commercial 2. The interest rate on the bank overdraft is 10% per annum, calculated daily and charged to 3, There are 300 bonds, each with a face value of Rs.1000 and a coupon rate of 10% per bill matures on 31 March 2016 but will be replaced by a further issue at that date. company account semiannually annum, payable on semiannually (30 June and 31 December). The bonds will be redeemed at their face value on 31 December 2017. On December 2015 the market value of each bond was Rs.1100 4. The preference shares are redeemable and have a face value of Rs. 10. Dividends are payable on 30 June and 31 December each year. The preference shares will be redeemed at their face value on 31 December 2018. On 3 December 2015, the market value of each preference share was Rs. 15 5. The company pays dividends ons ordinary shares once a year on 31 December. The company has paid Rs. 2 per share as dividends and these dividends will be increased by Rs. 0.5 in the next year. On December 2015, the market price of each ordinary share was Rs. 20. 6. The company income tax rate is 35%. Calculate the followings by considering the above mentioned information of Melbourne Company i. Average cost of debt on market value ii. Average cost of equity on market value iii. Average cost of funds on market value (6 Marks) (6 Marks) (2 Marks)