Question 6 You work for Stellenbosch Glass Ltd. The CEO of the company has given you an assignment to compute the cost of capital the company must use to discount cash flow generated by the company's many projects. You note that the company has a beta of 0.9. You also gather from the South African government website that the rate on government bonds is 6%. In addition, you find out that the prevailing risk premium in the South African market is 8%. Stellenbosch Glass Ltd capital structure includes a 30% debt, paying 7% interest rate. The rest is common equity. Using a corporate tax rate of 28% a. Estimate the cost of common equity capital for Stellenbosch Glass Ltd. (10 Points) b. What is the expected return on Stellenbosch Ltd. stock if a 7% movement in the market portfolio is expected? (5 Points) c. What is the weighted average cost of capital? (10 Points)