Del 0 Ins Question 1 (20) Alford Limited's capital is comprised of the following securities: R2 000 000-00 debentures with a coupon rate of 14% per annum and 10 years t maturity. The current market yield for similar debentures is 12% R3 000 000-00 preference shares with a par value of R1-00 and a coupon rate of 16% per annum. The required rate of return for similar preference shares in the market is 20% 2. 3. R5 000 000-00 ordinary shares at R1 each that are expected to pay a dividend of 20c forever and the required rate of return on the stock is 12%. 1.1 Calculate the value of the debentures. 1.2 1.3 1.4 Calculate the value of the preference shares. Calculate the value of the preference shares. Using the market values calculated above calculate Alford Limited's (8) (20)