Question 5: The Kay Company has the following Capital structure as at 31st March 2019. Based on Book Value Based on Market Value % Costs Debentures 300,000 330,000 7 Preference 100,000 110,000 9 Equity 1,500,000 1,700,000 15 Debt 200,000 180,000 10 Required: Determine the Weighted Average cost of capital using: a) Book Value weights b) Market Value weights c) What are the factors affecting Cost of Capital?