(discount rate) of a project. (6 marks) (Total 30 marks) Question 3 The following information relates to Gilla Ple, a commercial property development company listed on the UK stock exchange. a. Calculate the cost of equity for Gilla plc using the Capital Asset Pricing Model (CAPM). (4 marks) b. Gilla's dividend per share grows at a constant rate. Calculate the cost of equity for Gilla ple using the Dividend Growth Model. (6 marks) c. Assume that Gilla does not pay corporate tax and that its cost of debt is 4%, calculate the weighted average cost of capital (WACC) of Gilla using the cost of equity calculated in part a. above. (8 marks) d. Discuss why Gilla's cost of equity is greater than its cost of debt. (6 marks) c. Gilla is planning to invest in a new project that is significantly different from its existing business operations. One of the company directors suggests using the company WACC as the discount rate to evaluate the cash flows of the project. What would be your advice for the discount rate of the new project? Justify your answer. (6 marks) (Total 30 marks) Question 4 The management of CRB ple wants to estimate the cost of its