Question 3: Part 1: Arnold Ltd is an international company with its head office located in the UK. Its shares and bonds are listed on the London stock exchange. Extract from the most recent financial position as at 31 December 2019 are as follows: 000 3 million ordinary shares of 1 3,000 Reserves 7,000 6% bond 2,000 Historic records of dividends paid in the last five financial periods are as follow: Year ended 2015 2016 2017 2018 2019 31 December 000 000 000 000 000 510 540 580 610 630 Less dividends The market value of Amold 's ordinary share is 3.5 per share ex div. The bonds are redeemable in 10 years with a par value of 100 and a market value of 105. The current corporation tax rate is 30% Required: Calculate the followings for Amold Ltd when appraising new investment opportunities a. the cost of debt (10 marks) b. the cost of equity (10 marks) c. the cost of capital (WACC) (10 marks)