KBT 433: Financial management for Agribusiness (2019/2020) ODEL- CAT 1 1. KEN FLOWER FARM has a 4 million shares of common stock currently trading at Ksh 240 per share. Current risk free rate is 10%, market risk premium is 12% and the company has a beta of 4.2. It also has 600,000 bonds with par paying 20% coupon annually maturing in 10 years currently trading at 19,000. The tax rate is 15%. Calculate the weighted average cost of capital. (15 Marks) 2. Ddifferentiate between the capital structure and financial structure. (8 marks) 3. Describe Working capital cycle. (7 marks)