Rukahia Knighting, FCCA, and Obiapeasempa King Jnr, CFA, are independently analysing the value of Adobia Energy (Ghana) Ltd stock. Adobia Energy paid dividend for the past five years as: Year 2016 2017 2018 2019 2020 Dividend paid 25Gp 28Gp 30Gp 31Gp 32.75Gp Rukahia suspects that dividend grows at a constant rate per year. Rukahia, further, estimates that the shares of Adobia Energy is trading at GH8.50. Recently, Adobia Energy (Ghana) Ltd has paid a dividend of 32.75Gp. King Jnr has, also, researched extensively on Adobia Energy (Ghana) Ltds stock and he discovered that equity market, in which Adobia Energy (Ghana) ltd operates, is expected to earn 15.2%; Treasury bills are currently yielding 5%; the equity beta of Adobia Energy is estimated to be 0.6 and Adobia Energy (Ghana) ltd pays corporation tax at 35%. Adobia Energy (Ghana) Ltd issues GH20 million loan capital on which it pays an annual rate of interest of 10 per cent on the nominal value. The issue price of the loan capital is GH88 per GH100 nominal value. The loan capital is due to be redeemed in four years time at its nominal value. Page 5 of 11 Adobia Energy (Ghana) Ltd, also, has 44million ordinary shares at a par value of 75Gp in issue. Required i. Determine the approximate cost of equity, cost of debt and weighted average cost of capital (WACC), correct to the nearest whole number, of Adobia Energy (Ghana) Ltd, stating clearly any assumptions you make, from the perspective of the two analysts. [21 marks] ii. State four (4) uses of weighted average cost of capital by Adobia Energy (Ghana) ltd.