4 (25 Marks) After careful analysis, Excellence Berhad has determined its optimal capital structure as shown in the following table. Source of capital Target market value weight Long-term debt 30% Preference share 15% Ordinary share 55% Total 100% The cost of debt is estimated to be 7.2%; the cost of preference share is estimated to be 13.5%, the cost of retained earnings is estimated to be 16%; and the cost of new ordinary share is estimated to be 18%. All of these are after-tax rates. Excellence Berhad expects to have a significant amount of retained earnings available and does not intend to sell any new ordinary share. Calculate the WACC of Excellence Berhad. (25 marks)