QUESTION ONE The following is an extract of the statement of financial position of Kasama Plc. K100 ordinary share capital 200 000 000 Reserves 100 000 000 9% irredeemable K100 preference shares 60 000 000 8% Bond 240 000 000 8% Bank loan 80 000 000 680 000 000 Additional details The interest and dividend are shown cum interest and cum dividends. The ordinary share dividend to be paid is K20 per share. The bond which is redeemable in five years time is quoted at K113 (cum interest) per KIOO. The current cum dividend share prices for ordinary shares and preference shares are K320 and K150 respectively. The beta coefficient of the company is 1.2 Corporation tax rate is 30% The market risk premium is 5% The risk free rate is 10% Required (1) Calculate the weighted average cost of capital using the above information (W) Explain what a beta value of a share of more than one implies