Exercise 4 The Kay Company has the following Capital structure as at 31st March, 2020. Based on Book Value Based on Market Value Debentures 300,000 350,000 % Costs 7 Preference 100,000 130,000 9 Equity 1,500,000 1,750,000 15 Debt 200,000 170,000 10 Required: Determine the Weighted Average cost of capital using: a) Book Value weights b) Market Value weights c) What are the factors affecting Cost of Capital