Jeisa Ltd wishes to raise funds amounting to shs. 10 million to finance a project in the following manner. Sks. 6 million from debt Shs. 4 million from floating new ordinary shares. The present capital structure of the company is made up of the following: 600,000 fully paid ordinary shares of shs. 10 each Retained earnings of shs. 4 million v 3. 200,000, 10% preference shares of shs. 20 each 4. 40,000, 6% long term debentures of shs.150 each. The current market value of the company's ordinary shares is shs.60 per share. The expected ordinary share dividend in a year's time is shs 2.40 per share. The average growth rate in both dividends and earnings has been 10% over the past 10 years and this growth is expected to continue in the future. The company's long term debentures currently trade at shs. 100 each. The debenture has a maturity of 10 years. The preference shares were issued four years ago and still change hands at face value The tax rate is 30% Required: i Compute the component cost of pocty + 9 Ordinary shares b y Pirt Debt capital Real - I (1-1) Preference share capital (6 marks) Compute the company's weighted average cost of capital. (5 marks) Compute the company's marginal cost of capital if it raised the additional shs. 10 million