Question 4: (20 marks) a. Respond to the following statement, the director says: "Because of its inclusion of a financial perspective, a balanced Scorecard can only be used for profit-oriented companies." Is this statement true or false? Explain. b. Company KPC has an average trade receivables of $750,000 and annual sales of $1.45 million. It is considering the use of factoring given that this would result in a reduction in credit control costs of $70,000 per annum. The factoring house charges a fee of 1.3% of sales. It will provide an advance to the company of 85% of its receivables and will charge interest on this advance of 7 % per annum. Required: Assess whether it is financially beneficial for company KPC to enter into this factoring arrangement. C. A Toys Company has 1.4 million shares in issue. The current market price is $22 per share. The company's debt is publicly traded on the London Stock Exchange and the most recent quote for its price was at 90% of face value. The debt has a total face value of $6 million and the company's credit risk premium is currently 2.4%. The risk-free rate is 3.4% and the equity market risk premium is 7.3%. The company's beta is estimated at 1.1 and its corporate tax rate is 32%. Required: Calculate the company's WACC