Jensen Plc is an IT services company listed on the London Stock Exchange, which is looking to expand its operations into the provision of self-service point-of-sale systems for supermarkets across Europe. The company has grown rapidly in recent years with annual dividends having seen consistent growth as follows: Years 2019 2020 2021 2022 2023 Dividends 10.00p 12.00p 13.50p 14.50p 15.75p The company expects dividends to continue to grow for the foreseeable future in line with this recent dividend profile. Extracts from the companys most recent Balance Sheet as at 31 May 2023 are set out below: Ordinary 1 shares -14,000,000 5.5% 1 irredeemable preference shares -10,000,000 Retained earnings-19,400,000 Total Equity -43,400,000 7% irredeemable debentures (at nominal value)-50,000,000 6% unsecured loan notes (at nominal value) -36,000 Total non-current liabilities -86,000,000 The current ex-dividend ordinary share price is 3.50, whilst the current ex-dividend preference share price is 0.77. The irredeemable debentures have a current ex-interest market price of 86.50 per 100 debenture, whilst the unsecured loan notes have a current ex-interest market price of 84 per 100 loan note and will be redeemable at par in seven years time. The company pays corporation tax at a rate of 19%. The companys current liabilities do not include any overdraft borrowing. Regarding the companys proposed expansion plans, the Chief Executive has expressed his preference for any financing requirements to come from increasing debt rather than increasing equity in order to move towards minimising the companys Weighted Average Cost of Capital (WACC). Required: a) From the available information, calculate using market values, the companys WACC (show all workings clearly). b) b) Discuss the advantages and limitations of using the WACC as a discount rate to evaluate capital budgeting projects