Manny Ce is a listed company that plans os spend K.1Om on expanding its existing basiness. It has been suggested that the moncy could be naised by issuing 9/4 lowin nontes redecmahle in len years' time. Cerrent financial information on Manny Co0 is as follows. Inoome statomont informatice for the bat year The curremt ex div ofdinary shaes price is k.490 per share, As otdinary dividend of K.35 per share has just been paid and dividends are expected to increase by 4$ per year for the They have a curront es intered market price of K.10S per K100 loan note. Manny Ce pays ax en profits at an annal rate of 30h. The expansion of business is experted to increase profin tofore intered and tax by 12% in the first year. Manny Co has no overdral. Average sector ratios: Finmecial gearing: 45\% (prior charge capital divided by equity captal on a beok value bacis) Interent eovenape ratio; 12 times Required: LCalculane the current weighred averige cost of capual of Manny Ce. Uning Maket Values and Book Values (10 marks) A swume that the dividend proseth rate of 4% is unchanged