1.2 A company is raising capital for expanding the company. The capital will be raised by means of the following financial sources:

Bond: R350,000

Common stock issue: R200,000

Retained earnings: R1,800,000

Short-term debt: R150,000

The after-tax cost of the sources are as follows:

Common stock issue: 9% Short-term debt: 7%

Bond: 6%

Retained earnings: 4%

Determine the WACC for the companys expansion. (10)