Note: The Figures in the below Balance Sheet extract are only relevant to the questions in Question 2 Balance sheet as at 31st December 2019 '000 2250 900 Fixed Assets Current Assets Less Liabilities Current Liabilities 10% Iredeemable Bond Bank Loans Net Assets 765 540 420 -1725 1425 450 225 750 1425 Ordinary Shares (50 cents par value) 8% Preference Shares Reserves Capital Employed - The current dividend, due shortly, is 40 cents per share. Dividend growth in the future is expected to be 5% per year. - The current corporate tax rate is 20%. - The interest rate on bank borrowings is currently 12%. The following are the most recent equivalent stock market prices. Ordinary Shares 3 Preference Shares 92 cents 10% Irredeemable Bond 95 cents per 100 bond ii). Vito are looking to increase their capital levels to help fund a future project with a cost of 1,000,000. Sased on the information above and your knowledge of the various types of capital they have previously ailed of please outline to them the option(s) they should look to, to raise this additional finance. Justify our recommendation. (10 Marks) iii). Vito's Corporate Finance manager has been told that while the calculation of the WACC is traightforward in theory it can be difficult in practice. They have heard further issues can arise with leciding when to use it for appraising projects. Outline two possible difficulties to them when trying to calculate the WACC and the conditions in which it hould be used for appraising future projects. (15 Marks)