Shamanei Ltd has the following capital structure.

Source value$)$ After$-$tax cost $\%$ Market value shs million $($After tax$)$ X $($market

Equity $12101\mathrm{.}2$

Preferred stock $1020\mathrm{.}2$

Bonds $7\mathrm{.}580\mathrm{.}6$

$202\mathrm{.}0$

You also learn that the directors of Shamanei Ltd have decided to embark on a major capital expenditure which will be financed by a major issue of funds. The estimated project cost is sh$\mathrm{.}3,000,000,1/3$ of which will be financed by equity, and $2/3$ by bonds.

As a result of undertaking the project, the cost of equity $($existing and new shares$)$ will rise from $12\%$ to $14\%.$

The cost of preference shares and the cost of existing bonds will remain the same, while the after$-$tax cost of the new bonds will be $9\%$

i$)$ Calculate:

a$)$ The Weighted Average Cost of Capital WACC$)$ of the old capital structure.

b$)$ The cost of the new WACC

c$)$ The company$$s marginal cost of capital