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5) The following information of Buildsworth (Pty) Ltd is presented to you: Market value of equity Share capital Book value of the long-term loan at
5) The following information of Buildsworth (Pty) Ltd is presented to you: Market value of equity Share capital Book value of the long-term loan at 12 % Market value debentures Book value of debentures at 13 % Retained income Market rate of equity Current JIBAR rate of similar long-term loans Market return for similar debentures R15 000 000 R12 000 000 R 1 968 000 R 4 632 000 R 5 400 000 R 7 800 000 17% 10,0% (after tax) 13% (before tax) REQUIRED: Calculate the weighted average cost of capital (WACC) of Buildsworth (Pty) Ltd. [Show detailed workings and round your final answer to two decimal places.1 (7)
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