Question 3 (18 marks) Peoples Limited has the following securities in issue: 1 million ordinary shares currently trading at N$1.30 each. The last dividend paid amounted to 15.5 cents and the earnings and dividends of Peoples are expected to grow at 4% per annum. 250 000 non-redeemable 7% preference shares with a nominal value of N$1.10 each. These shares are currently trading at N$0.65 per share. 1 550 12% unsecured bonds with a nominal value of N$100 each currently trading at N$85 each. These bonds are redeemable in 3 years' time at the nominal value. Required: (a) Calculate the weighted average cost of capital for Peoples Limited using market values. (10 marks) (b) Is there another way to calculate the weighted average cost of capital? Support your answer with a brief explanation. Define all terms used in your answer. (8 marks)