Information concerning the capital structure of Agro Retailers is as follows: - The current risk-free rate is 7,25%, while the current market portfolio return is 12,2%. The company's beta is 1 . - The redeemable preference share capital was issued at R5 per share and is redeemable in four years' time at par value. An annual 10% dividend is paid at the end of each of the four years. The shares are currently trading at R5,50 per share. - The 12% bonds are non-redeemable, with a par value of R120, and are currently trading at a 10% premium. - The company tax rate is assumed to be 28%. REQUIRED: Calculate the cost of: (a) Ordinary shares (b) Preference shares (c) Debt Using the table below and the given market values of every form of capital, calculate the weighted average cost of capital (WACC) for Agro. Provide a brief discussion of no more than 15 lines a regarding the use of WACC as part of capital structure calculations of a company. Question 3: 25 Marks Projects M and N, of equal risk, are alternatives for expanding Rosa Company's capacity. The firm's cost of capital is 13%. The cash flows for each project are shown in the following table