Download the annual reports of Clover Pakistan Ltd and Fauji foods Ltd from the below

mentioned links and answer the questions:

Clover Pakistan

https://www.clover.com.pk/wp-content/uploads/2019/10/Annual-Accounts-2019.pdf

Fauji Foods Ltd

https://www.faujifoods.com/wp-content/uploads/2020/03/Annual-Report-2019-Fauji-FoodsLtd.pdf

Required:

a) What is the capital structure of the two companies during 2018 and 2019?

b) In calculating the WACC, if you had to use book values for either debt or equity, which

would you choose? Why?

c) Why do we use an after tax figure for cost of debt but not for cost of equity?

d) Suppose the company president has approached you about company's capital structure.

He wants to know why the company doesn't use more preferred stock financing, since it

costs less than debt. What would you tell the president?