Question 1 (20 marks) Read the scenario below and answer the questions that follow. A logistics and mobility solutions company has some positive net pre- investment opportunities for the coming financial year. The compan has no retained earnings and is looking to raise new financing throug of debentures and ordinary shares. The features of the debentures ar shares are provided below. Debentures The company will issue 12.25% coupon debentures with a face valu The debentures will have a maturity of 10 years. Coupons on the del be paid annually in arrears. The yield to maturity on similar risk d 13.50%. Ordinary shares The company has indicated that it will not pay any ordinary divic next three years as it seeks to retain any earnings to meet ant investments. An ordinary dividend of R2.50 per share is expected t years from now. The ordinary dividends are then expected to gro year for the subsequent three years, after which the dividends wi per year in perpetuity. Market analysts believe that a return of 15 reflects that risk associated with the company's ordinary shares.