SECTION A COMPULSORY Question One The following information relates to a company listed on Luse - Mungwi PLC The current cum interest market value per K100 unit is K103 and K105 for the 6% and 9\% debentures respectively. The 9% debenture is iedeemable at par in 10 years time The bank loan bears interestrate of 2% above the base rate fcurrent base rate is 15\%/) The cument ex-civ market pice of shares is KI,100 and a dividend of K100 per share which is expectect to grow al a fate of 5% per year has just been paid. The eflective. Requiredi The following information relates to a company listed on Luse - Mungwi PLC The curtent cum interest markel value per K100 unit is K103 and K105 for the 6% and 9% debentures respectivety. The 9% debenture is redeemable at par in 10 years time The bankioan bears interestrate of 2% above the base rate (current base rate is 15% ) The ourrent ex-div maiket price of shares is K1, 100 and a dividend of k100 per share: Which is expected to grow at a tate of 5% per year has just beon paid. The effective corporation tax rate for Mungwils 30% Required: A) Calculale the effective after tax Wreignted Average Cost of Capitar Maxice for Mungwi PLC