The following has been extracted from the books of Chobe Holdings as at 30 June 2018. - Market Shares Market Value Price Outstanding 000 Debt (book value P6,131 Class A common 25.75 12,000,000 P 309 Staff Class A Common 23.09 347,426,000 P 8,022 Class B Common 23.27 1,018,625,000 P 23,703 Total 38,165 You have been requested by the Senior Analyst to estimate the cost of capital for Chobe Holdings as at 30th Jure 2018. The beta for the company is estimated to be 0.79. The current risk-free rate is 4.07% while historical market risk premium is 6.89%. The yield on the company's long-term bond is 5.73 and the firm is in the 40% marginal tax rate. i. Calculate the cost of equity for the firm [2 marks] ii . Calculate the cost of debt. (2 marks] iii. Estimate the value weights of equity and debt. (4 marks) iv. Calculate the cost of capital for Chobe Holdings. [4 marks! v. Under what conditions will you advice the firm to use this cost of capital for discounting any project it intends to undertake. [4 marks] What are the two advantages and two weaknesses of a sole proprietorship formof business. (4 marks]