Pacic Coconuts Ltd. is an investment company that is considering expanding their business, and as such, is reviewing their current nancing mix and the costs of their sources of nance. The latest balance sheet for the company shows: - Bonds: Par $100, annual coupon 9% pa, 6 years to maturity 3,000,000 Preference shares (500,000 shares outstanding, 40 cents per share dividend] 2,000,000 Ordinary shares {10,000,000 shares issued] 10,000,000 The company's debt {bonds} currently sell for $104.62, while the preference shares currently sell for $3.89 Pacic lCoconuts wishes to re-estirnate the value of their shares based on historical cost of equity and dividend growth values. Historically, the cost of equity averages 15% p.a., while the growth of dividends is estimated at 4% per year and is expected to continue to do so in the rture. Pacic Coconuts has recently paid a dividend of 15 cents. The company's tax rate is 30%. sing current market and expected (calculated) values, determine the market value proportions o u'ht, referencesharesand tn: 'w'PacicCocomrtscauitaln (a) (h) Calculate the after-tax costs of capital for each source of nance. {3 marks) (c) Determine the after-tax weighted average cost of capital for the company. {3 marks) (d) Using your knowledge of the costs of nance capital, identify what you expect to happen to the weighted average cost of capital if additional costs are incurred in the securing new equity nance