[ The following gures have been extracted from the nancial statements of MRT-Ltd. > Book Value of Current Assets $35 million and Current Liabilities $29.25 million > Long-term Loan: $7.98 million > Retained Earnings: $22.50 million > 8% Debentures: $26 million debentures issued at $1,000. > General Reserves $7.50 million > Preference Share Capital: 7.1 million shares issued at $3 per share > Ordinary Share Capital: 34 million shares issued at $1 per share The following additional information has been provided by the manager of the company: > Government bonds are currently yielding 6.5% per annum. > The current market return on equity is estimated to be 13.3% per annum. > A merchant banker suggests that MRT Ltd would have to offer a rate of 13.3% p.a. on any new issue of 24-year debentures. > Debenture coupons are paid semi-annually, with 24 years to maturity. > The company tax rate is 33%. > Preference shares of MRT Ltd are currently traded at $3.72 per share > MRT Ltd ordinary shares have recently traded at $4.35 and the company's nancial manager believes that a beta of 1.9 is appropriate for the company. RequirementA. Using relevant information, estimate the weighted average cost of capital for MRT Ltd. Requirement-B Using your own words, explain any four relevant factors that can affect the cost of capital.