Read the scenario below and answer the questions that follow. A logistics and mobility solutions company has some positive net present investment opportunities for the coming financial year. The company cu has no retained earnings and is looking to raise new financing through th of debentures and ordinary shares. The features of the debentures and o shares are provided below. Debentures The company will issue 12.25% coupon debentures with a face value of The debentures will have a maturity of 10 years. Coupons on the debent be paid annually in arrears. The yield to maturity on similar risk debe 13.50%. Ordinary shares The company has indicated that it will not pay any ordinary dividene next three years as it seeks to retain any earnings to meet anticip investments. An ordinary dividend of R2.50 per share is expected to be years from now. The ordinary dividends are then expected to grow a year for the subsequent three years, after which the dividends will g per year in perpetuity. Market analysts believe that a return of 15% reflects that risk associated with the company's ordinary shares.