问答题 Tinep Co is planning to raise funds for an expansion of existing business activities and in preparation for this the company has decided to calculate its weighted average cost of capital. Tinep Co has the following capital structure:

问答题 (a) Calculate the market value weighted average cost of capital and the book value weighted average cost of capital of Tinep Co, and comment briefly on any difference between the two values.(9 marks)

问答题 (b) Discuss the factors to be considered by Tinep Co in choosing to raise funds via a rights issue.(6 marks)