SALIFLE QTEETIHN 3 IQuest Explc-raticn Ltd is trying to take advantage cf the cemrucditj. hneru h1.' increasing its errpleracn activities. However. as a junier mining cerepan1. it will need tn raise additirrnal capital ever the coming 1:.ear The tair rate cfthe compare. is 305'... As nancial manager. 1.1m have prepared the fdliewing inferma1icn and nancial data. Elleht: IQuest Explcralien can raise auuuiirnited ametmt cf deht hj. selling $1 DEIEI par [es] T.alue 15. 3'5. eEIL'I'IIPDI] interest l~1.'ear hands. In erder tcn sell the issue, an average disceunt cf 51!} per band needs in he given. Additicnall1geatahcn casts cf 25".. cf par value 1.1I.-'il| he incurred. Preference shares: An unlimited number cfpreference shares can he seld under the fell-raving terms: the shares have a ce T.-'alue cf per share the annual dividend rate is \"" efthe ce value and the eaiaticn crrst is espectei tc- he $4 per share. The preference shares are expected to sell fer $1M hefere ccst ccnsidera'a'cns- Gm ' shares: The current price rrf lEarliest Eaplcnracun's crdiuar1. shares is $35 per share. 15. cash dividend ef $3.01} per share was recentl1.' paid- The fum=s dividends have grams at an annnai rate cf 5's. and are espected trr grew at this rate in the sreseeahle future. The cafaiien cost is expected tc he approximately $2 per share. 2