QUESTION ONE The following figures have been extracted from the most recert accoonts of Kalumbe share cum div. An annus dividend of Ka10,000 is due for payment shorly, The debertures are redeemable af par in tien ytars time. Their curiert maket is KT7 78 pes deberture. Anvual intereat has just been poid on the debentures. There has been no The current rate of coporation tax is 305, and the current basic rate of income tar is 25t. Assume fliat there have been ne changes in the frstem of ratse af taxation during the isst five years. Required (a) Eatimale the cost of eapital which Kalumba Ple should wae as a descourt rate when appraising new inveatmers escortunitier. (b) Docuns ary difficuties and incertainties in your estmates QUESTION ONE The following figures have been extracted from the most recert accoonts of Kalumbe share cum div. An annus dividend of Ka10,000 is due for payment shorly, The debertures are redeemable af par in tien ytars time. Their curiert maket is KT7 78 pes deberture. Anvual intereat has just been poid on the debentures. There has been no The current rate of coporation tax is 305, and the current basic rate of income tar is 25t. Assume fliat there have been ne changes in the frstem of ratse af taxation during the isst five years. Required (a) Eatimale the cost of eapital which Kalumba Ple should wae as a descourt rate when appraising new inveatmers escortunitier. (b) Docuns ary difficuties and incertainties in your estmates