iv. has the following capital structure which it considers optimal: A. Determine the: i.ii.costofpreferredstock.iii.costofcommonstock.iv.weightedaveragecostofcapital.(4marks)(2marks)(2marks)(4marks) B. The firm has a beta of 1.4. The market return equals 12% and the risk-free rate of return is 7%. Determine the firm's cost of common equity using CAPM approach. (3 marks) C. Explain why cost of capital is measured on the after-tax basis. (3 marks) D. Why is using a weighted average cost of capital recommended rather than the cost of specific funds to determine a firm's cost of funds? (2 marks) iv. has the following capital structure which it considers optimal: A. Determine the: i.ii.costofpreferredstock.iii.costofcommonstock.iv.weightedaveragecostofcapital.(4marks)(2marks)(2marks)(4marks) B. The firm has a beta of 1.4. The market return equals 12% and the risk-free rate of return is 7%. Determine the firm's cost of common equity using CAPM approach. (3 marks) C. Explain why cost of capital is measured on the after-tax basis. (3 marks) D. Why is using a weighted average cost of capital recommended rather than the cost of specific funds to determine a firm's cost of funds? (2 marks)