Required:

a) Calculate the following values for WeDeliver Plc:

i.The current share price, using the dividend growth model;

ii.The current weighted-average cost of capital, using market values;

iii.An appropriate discount rate for a project with a beta of 1.4.

b) Discuss why the cost of capital differs across the sources of finance used by WeDeliver.

c) Discuss whether a change in the capital structure could reduce WeDeliver Plc's overall cost of capital and/or increase the value of the company.