The issued share and debt capital of kole plc is as follows The ordinary shares have a current market price of 3.00 each. The dividend for 2006 of 33.3 penny per share has just been paid. Dividends per share in the four preceding years were as follows: 2012- 24.5p, 2013-26.4p, 2014- 28.5p, 2015-30.8p Dividends are paid once a year and expected to grow in future at the same annual rate as they since 2012 . The preference shares have a market price of 0.80 each. The 2016 dividend of 12p per share has been paid once per year, the convertible debenture stock has a market price of 120 per cent. The stock is convertible into ordinary shares in four year time at a rate of 100 nominal of stock for 37 ordinary shares. The market price of the shares at the time of conversion is expected to be 4.08 each. The unsecured loan stock has a market price of 80 percent and is redeemable at par in five years time. Interest on both convertible loan stock and the unsecured loan stock is paid annually. the company has just paid the interest for 2017 on both, the company pays corporation tax at a rate of 25%. Required (a) estimate the weighted average cost of capital (WACC) to kole Plc (15 marks) (b)Discuss the argument for and against the use of WACC as the discount rate for investment appraisal. (10 marks)