recommend QUESTION THREE Chambishi Milling Company (C.M.C) has the following capital structure: The company is growing very fast and management wishes to raise additional K30, 000,000 to expand capaciry. The money can be raised by issuing bonds, preferred stock or common equity. Suppose the risk free rate is at 8% and the expected market retum is 14% and the stock beta of 0.7 . You are also aware that the company has just paid a dividend of K1.34 and that is expected to grow at a rate of 6.6%. Let us assume that corporate tax is 40% and current stock price of 25.54 Required: a) Calculate the cost of debt for Chambishi milling Company. b) Calculate the company cost of preferred stock c) Calculate the cost of equity using both the dividend growth model and the Security market line d) What is the firm's average cost of capital