You are a conservative investor who is considering investing in Kite Films, a small film company. You like the intrinsic valuation approach and want to calculate Kite Films weighted average cost of capital and then perform a discounted cash flow analysis. You note that the equity market risk premium calculated using the geometric mean is 3.9% and the equity market risk premium calculated using the arithmetic mean is 5.8%. The risk free rate is 2.5% and the tax rate is 35%. You feel that Kite Films is riskier than the CAPM would indicate due to its small size and believe it has a size risk premium of 1.2%. You have the following information about Kite Films: Bonds: Kite Films has two bonds as outlined below: o Bond One: six year maturity, $1,000 face value semi-annual coupon bond with a coupon of 1.73% and a yield to maturity of 4.23%. Kite Films has 25,637 of these bonds outstanding. o Bond Two: is a coupon bond that pays annually and has nine years to maturity. The coupon rate is 2.75%, its yield to maturity is 4.78% and its face value of $1,000. Kite Films has 7,864 of these bonds outstanding. Equity: Kite Films has 4,125,876 common shares outstanding and its stock price is $3.56. Kite Films beta is 3.1 and its Shareholders Equity from the balance sheet is $9.3mm. Unlevered Free Cash Flow as per the following table: a) Calculate Kite Films weighted average cost of capital. Please show all your work and round to at least 2 decimal points. (14 marks)