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QUESTION TWO (10 MARKS) The Adepa Company is interested in measuring its overall cost of capital. The following data relates to the finance of the

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QUESTION TWO (10 MARKS) The Adepa Company is interested in measuring its overall cost of capital. The following data relates to the finance of the company: The company has bonds of GH1,000 par value, 10% coupon interest rate. The bond is redeemable in 10 years. The current market value is GH950 per bond ex interest. The company also has 1 million, GH100 par value of 10.5% preference shares outstanding and 5 million ordinary shares outstanding. The preference shares sell for GH56 per share. The ordinary shares have a beta of 1.2 and sells for GH38 a share. The Government Treasury bill is yielding 13% and the return on the market is 22%. The corporate tax rate is 40%. Required Calculate the cost for each source of capital

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