Lexton limited has anequity beta of 1.10. the market risk premium in zambia is expected to be 5% and the yield on government bonds is currently trading at K94.50 . The coupon rate is 8%. The maturity date is five years time and the corporation tax is rate is 28% . interest is payable annually in arrears , the company has just paid the coupon interest for the current year

a) what is lextons cost of equity based on the capital asset pricing model(CAPM)

b) what is the after cost of debt

c) lexton paid a dividend of K0.12 per share and the dividend per share is expected to grow at 7% indefinitely. The companys share price is K2.30 .What is the companys cost of equity.

d) what is the weighted average cost of capital (WACC) if the target debt -equity ratio is 50% ( use the cost of equity as per CAMP)