THE QUESTION Refer to the table below depicting the financing structure for the proposed upgrade of the Lusaka-Ndola dual carriageway and answer the following questions. (a) Within the available information, calculate the gearing ratio for the project financing [3] (b) Interest rates on equity are usually higher than those on debt due to the underlying risk profiles. This is not so in the case of the National Pension Scheme Authority above. What are the likely reasons for this difference? [5] (c) Why have financing institutions provided for a moratorium? [3] (d) Stanbic Bank, a private financier, has not yet provided a drawdown schedule. What reasons could be attributed to this delay? [3] (e) Using the available information, calculate the project's weighted average cost of capital (WACC). [6] THE QUESTION Refer to the table below depicting the financing structure for the proposed upgrade of the Lusaka-Ndola dual carriageway and answer the following questions. (a) Within the available information, calculate the gearing ratio for the project financing [3] (b) Interest rates on equity are usually higher than those on debt due to the underlying risk profiles. This is not so in the case of the National Pension Scheme Authority above. What are the likely reasons for this difference? [5] (c) Why have financing institutions provided for a moratorium? [3] (d) Stanbic Bank, a private financier, has not yet provided a drawdown schedule. What reasons could be attributed to this delay? [3] (e) Using the available information, calculate the project's weighted average cost of capital (WACC). [6]