QUESTION FOUR () Zesco Limited is a power utility company in Zambia. Given the following information for Zesco Limited, find the WACC for the company. Zambia's company's tax rate is 35 percent for power utility companies. Debt: 5,000 8 percent coupon bonds outstanding, K1,000 par value, 20 years to maturity, selling for 103 percent of par; 50,000 shares outstanding, selling for K17.16 and paying a dividend of K1.50; Preferred stock: Common stock: 160,000 shares outstanding selling for K57 per share the beta is 1.10 Market 7 percent market risk premium and 6 percent Treasury bills rate (17 marks) (ii) Capital markets play an important role in our financial system and the economy as a whole. What capital markets do we have in Zambia and how do they operate? How do capital market operations assist the economic development of a country? (8 marks) Total (25 marks)