Canada Cranes is looking to determine its cost of capital and has asked you to assist. Information available includes the following: Preference Shares: The preference shares were issued for $30 with a 5% dividend. The current market price is $16. There are 20 million shares on issue Debt: The debt that the firm has issued was issued 10 years ago and has 10 years left to maturity. The bonds pay monthly coupon of 12% pa. The bonds were issued for $1000 each and are currently valued at $1000 each. There are 100,000 bonds on issue Ordinary Shares: These shares currently trade for $5. The Beta of these shares is 1.25, the market risk premium is 10% and the risk-free rate is 3%. These shares last paid a dividend of 50 cents with expected growth of 3%. There are 100 million shares on issue Other Information: Canada Cranes' tax rate is 20%. Calculate the following: C) Determine the required return of the ordinary equity using the CAPM. (2 Marks) Please answer as a decimal to 4 decimal places. Answer: D) Determine the required return of the ordinary equity using the dividend discount model (DDM). (2 Marks) Please answer as a decimal to 4 decimal places. Answer: E) Determine the weight of debt, ordinary equity and preference equity to be used in the calculation of the after tax WACC. (3 Marks) Please answer as a decimal to 4 decimal places. Answers: Weight Debt Weight Ordinary Weight Preference