A company is trying to work out the appropriate cost of capital to use in its capital project evaluations. It has identified the following information about its current capital structure:

• Equity: R1 000 000
• Long term debt: R250 000
  • Note: these bonds were originally issued at a coupon rate of 15%. The yield to maturity (YTM) of these bonds is currently 10%.

• Short term debt: R100 000
  • This is an overdraft facility with interest charged at the prime overdraft rate which is currently 16%.

The current marginal corporate tax rate is 25%. The companys Beta is 1.2 and the estimated Market Risk Premium is 6%. The current long term Government Bond rate is 9%. What is the company's Weighted Average Cost of Capital (WACC)?