Culio Jay Ltd is a based in Alberta, Canada. It manufactures silk garments for the Dubai market. The silk garments business has been doing very well. The management is considering expanding the operations of the company. However, management is concerned about how the new investments are going to be financed. They are concerned that the capital structure of the company is going to change.$$ The following information has been extracted from Culio JAY $$s most recent balance sheet: $$ $ Ordinary share capital: $50000$ shares$250000$ Retained income$250000$ Long$-$term debt$500000$ Capital employed$1000000$ The shareholders require a return of $20\%$ on their investment. Culio Jay paid a dividend of $$200000$ for the past seven years. The long$-$term debt has an interest rate of $10\%$ per year. $$Culio Jay will repay the loan in four years$$ time. Banks are currently offering similar long$-$term debt at $14\%$ per annum. Management wants debt ratio to be $40\%$ of capital. Required: a$)$ Calculate the WACC of Culio Jay using Book Values.$(3$ Marks$)$ b$)$ Calculate the WACC of Culio jay using Market Values.$(3$ Marks$)$ c$)$ Calculate the Target WACC for Culio Jay. $(4$ Marks$)$ d$)$Which one of the WACCs calculated above should be used to evaluate new projects by the company?$(2$ Marks$)$ e$)$ Use the WACC you selected in d$)$ above to explain how new investments for the company should be financed $(10$ Marks$)$