Congress Ltd. a taxation category 2 company has new projects being investigated. As an equity advisor, you need to identify the rate of return demanded by investors to advise on which projects are worthwhile to pursue. The latest balance sheet for the Congress Ltd shows: Long Term Debt Book Value ($) Bonds: 1,500,000 Issued at par: $1,000 Annual coupon of 7% 4 years to maturity Equity 1,000,000 Preference Shares: 200,000 shares outstanding $0.75 dividend per share 3,500,000 Ordinary Shares: 500,000 shares outstanding Congress Ltd.'s bank has advised that the interest rate on any new debt finance provided for new projects would be 10% p.a. The company's preference shares currently sell for $8.50. The company's existing ordinary shares currently sell for $5.80 each and pay a dividend per share of $0.35 which has just been paid to shareholders. Historically, dividends have increased at an annual rate of 3% p.a. and are expected to continue to do so in the future. Congress' company tax rate is 30%. (a) Determine the market value proportions of debt, preference shares and ordinary equity comprising the company's capital structure. (6 marks) (b) Calculate the after-tax costs of capital for each source of finance. (3 marks) (c) Determine the after-tax weighted average cost of capital for the company. (2 marks) (d) When is it appropriate to use the weighted average cost of capital for new projects